8. A cable company offers two basic packages: sports and kids, and a combined package. There are...

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8. A cable company offers two basic packages:

sports and kids, and a combined package. There are three different types of users: parents, sports fans, and generalists. The following table shows the maximum price that each type of consumer is willing to pay for each package.

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a. If the cable company offers any one package for $50 or the combined bundled package for $70, who will buy each package?

b. Explain why the company will make a higher profit with this method than if the bundled package option were not offered.

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Economics For Managers

ISBN: 9781292060095

3rd Global Edition

Authors: Paul Farnham

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Question Posted: Nov 13, 2024 08:01 AM

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8. A cable company offers two basic packages: sports and kids, and a combined package. There are...

Question:

Parents Sports Fans Generalists Sports Package 10 50 40 Kids Package 50 10 40

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Economics For Managers

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