1a. Explain why pricing below marginal cost might be viewed as a deliberate attempt to drive out a competitor rather than vigorous competitive pricing. Can you think of any situations where a firm might set a price below marginal cost but not be predatory pricing?

b. Think of reasons why bundling might be good for consumers and business. Under what circumstances could bundling create competition concerns? In particular, why might government be concerned if the firm that bundles the products has a monopoly in part of the bundle?