Samantha Tylan Mikayla Simran Printed textbook $70 $80 $20 $40 Code for online resources Bundle $20 $30 $50 $40 What is the profit-maximizing price for textbooks and codes under individual pricing (no bundling)? What is the profit-maximizing price of a bundle (textbook+code) under pure bundling (only bundles can be sold)? Is it true that publishers sell bundles, as opposed to individual products and services, to make consumers better off? Discuss.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter13: Monopoly And Antitrust
Section: Chapter Questions
Problem 13P
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You are selling printed textbooks and codes for online resources. Your marginal cost is zero and your
customers' willingness to pay is listed below:
Printed textbook
$70
$80
$20
$40
Code for online resources
Bundle
Samantha
Tylan
Mikayla
Simran
$20
$30
$50
$40
What is the profit-maximizing price for textbooks and codes under individual pricing (no bundling)?
What is the profit-maximizing price of a bundle (textbook+code) under pure bundling (only bundles can
be sold)?
Is it true that publishers sell bundles, as opposed to individual products and services, to make consumers
better off? Discuss.
Transcribed Image Text:You are selling printed textbooks and codes for online resources. Your marginal cost is zero and your customers' willingness to pay is listed below: Printed textbook $70 $80 $20 $40 Code for online resources Bundle Samantha Tylan Mikayla Simran $20 $30 $50 $40 What is the profit-maximizing price for textbooks and codes under individual pricing (no bundling)? What is the profit-maximizing price of a bundle (textbook+code) under pure bundling (only bundles can be sold)? Is it true that publishers sell bundles, as opposed to individual products and services, to make consumers better off? Discuss.
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