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2. A firm produces two products, the demands for which are independent. Both products have zero marginal cost. The firm faces four consumers with the

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2. A firm produces two products, the demands for which are independent. Both products have zero marginal cost. The firm faces four consumers with the following reservation prices: ansumer QQQM QQQLLZ 'l 25 'l 00 2 40 80 3 80 40 4 'l 00 25 a. Show the optimal price and quantity of Good 1 (unbundled) on a graph with the rm's demand and marginal revenue. b. Show the optimal price and quantity of the bundle (Goods 1 and 2) on a graph with the firm's demand and marginal revenue (for the bundle). 0. Should the firm bundle these goods? Compare the firm's profits under both scenarios. d. Which approach do consumers prefer? Compare consumer surplus under both scenarios. e. Now suppose that MC = 30. Reassess the optimal prices, quantities, and profit with and without bundling

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