9.13 Consider a local fast-food restaurant. The following table shows the maximum price that Alex and Anna will pay for two products: chicken nuggets and fries. Assume the marginal cost of chicken nuggets is $1.00 and the marginal cost of fries is $0.50. Maximumpncre Bundle Price a. Compare all four possible single-item pricing policies to nd the prot-maximizing policy. b. Solve for prots if the restaurant engages in pure bundling. c. Assume the restaurant engages in mixed bundling and charges $3 .50 for a bundle, $2.45 for chicken nuggets, and $2.00 for fries. Show that the prot obtained under mixed bundling is not higher than that under pure bundling. d. Explain why mixed bundling does not yield higher prots in this case. 10.5 The Waldrnan ice cream truck example used two trucks. The Nash equilibrium in the absence of collusion was for the two rms to locate at the middle. Interestingly, if there were three trucks competing instead of two, no (pure strategy) Nash equilibrium exists. Instead, there is only a mixed strategy equilibrium. Why is there no pure strategy equilibrium with three trucks? [Hintz Try positioning the trucks anywhere along the route. Why does at least one truck always have an incentive to move?]