(25 points) Suppose, your firm produces two products, the demands for which are independent. You face four consumers with the following reservation prices: Consumer A B Good 1 25 40 80 100 Good 2 100 90 60 20 D b. (2 points + 8 points) Do you think a mixed bundling strategy can generate more profit for this firm? Why or why not? Calculate the amount of profits the firm is generating under the following mixed bundling strategies. Evaluate each strategy to identify the reason why one strategy is generating more profit than the other. (hint: calculate consumer surplus at each price for each consumer and check if inclusion or exclusion principals are violated.) i) ii) Bundle price, PB = 130; Price of good 1, Pa = 100; Price of good 2, P2 = 100 Bundle price, PB = 140; Price of good 1, P1 = 100; Price of good 2, P2 = 100 (25 points) Suppose, your firm produces two products, the demands for which are independent. You face four consumers with the following reservation prices: Consumer A B Good 1 25 40 80 100 Good 2 100 90 60 20 D b. (2 points + 8 points) Do you think a mixed bundling strategy can generate more profit for this firm? Why or why not? Calculate the amount of profits the firm is generating under the following mixed bundling strategies. Evaluate each strategy to identify the reason why one strategy is generating more profit than the other. (hint: calculate consumer surplus at each price for each consumer and check if inclusion or exclusion principals are violated.) i) ii) Bundle price, PB = 130; Price of good 1, Pa = 100; Price of good 2, P2 = 100 Bundle price, PB = 140; Price of good 1, P1 = 100; Price of good 2, P2 = 100