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2. Suppose there are a total of consumers whose valuations (! , ) for two products are distributed uniformly in the area [0,1] [0,1].

2. Suppose there are a total of consumers whose valuations (! , " ) for two products are distributed uniformly in the area [0,1] [0,1]. This means that if you take a subset of the area [0,1] [0,1], then the number of consumers who are "located" in is equal to () ([0,1] [0,1]) Suppose a firm is currently selling each good at an individual price of $0.5. The costs of production are 0. o What are the firm's profits? o If it also introduces a bundled option for $0.8, calculate the increase or decrease in its profits

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