Suppose mers (or types the willingness to pay vice or a bur Assume the selling one more service to a customer are virtually zero (such that the firm attempts to maximize revenue). Explain why the firm does not use mixed bundling. Throughout, if consumers are indifferent between purchases, then assume they make the purchase that benefits the firm. First, let consumer valuations be positvely correlated. Television Bundle Internet $150 $140 $130 Consumer 1 Consumer 2 Profit-maximizing price $280 $55 $195 $140 130 $195 Profit from selling the goods at separate prices is separate = $. profit from selling the goods at the bundled price is Abundled = $. and profit from selling the goods at the profit-maximizing separate prices and at the profit-maximizing bundled price is mixed =$. (Enter numeric responses using integers.) and average costs
Suppose mers (or types the willingness to pay vice or a bur Assume the selling one more service to a customer are virtually zero (such that the firm attempts to maximize revenue). Explain why the firm does not use mixed bundling. Throughout, if consumers are indifferent between purchases, then assume they make the purchase that benefits the firm. First, let consumer valuations be positvely correlated. Television Bundle Internet $150 $140 $130 Consumer 1 Consumer 2 Profit-maximizing price $280 $55 $195 $140 130 $195 Profit from selling the goods at separate prices is separate = $. profit from selling the goods at the bundled price is Abundled = $. and profit from selling the goods at the profit-maximizing separate prices and at the profit-maximizing bundled price is mixed =$. (Enter numeric responses using integers.) and average costs
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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