Question
3. ( 5 points ) A computer hardware firm sells both laptop computers and printers. It has a large inventory of laptops and printers that
3. (5 points) A computer hardware firm sells both laptop computers and printers. It has a large inventory of laptops and printers that it wants to sell, so it has not variable production cost. The firm has determined that there are three type of consumers for its products
To simplify the analysis, you may assume that there is one customer of each type.
(a) If the firm were to charge only individual prices and not the bundle price, what price should it charge for its laptops and what price should it charge for its printers in order to maximize revenue? Assume that the firm has one customer of each type. Please explain.
(b) If the laptop and printer are bundled together, what price will the firm charge for the bundle in order to maximize revenue? Assume that only the bundle is sold and the laptop and printer are not available separately. Please explain.
(c) Assume that the laptop and the printer are bundled together, and the laptop is available separately for $600 and the printer is available separately for $100. What will the bundle price now be in order to maximize revenue? Please explain.
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