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a) Determine the optimal price schedule if Tugacom practices individual prices for each service. Compute the profits.b) Determine the optimal price schedule if Tugacom sells

a) Determine the optimal price schedule if Tugacom practices individual prices for each service. Compute the profits.b) Determine the optimal price schedule if Tugacom sells only the new bundle More-4-U, that includes the four services. Compute the profit.c) Is there a mixed bundling strategy that sustains this statement?

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Tugacom has recently surprised the market with a revolutionary product: More- 4-U. This service includes Television, Internet, Fixed Telephone and Mobile Communications in a single bundle. Moreover, supplying each of these four services has a cost of 26 per consumer. In the beginning, Tugacom expects to face three different groups of consumers, A, B and C. Each group has the same size but different preferences. The following table presents the reservation prices, in euros, of the three groups of consumers for each single product: Type TV Internet Fixed Telephone Mobile A 20 20 20 25 B 15 15 20 30 30 20 20 10 a) Determine the optimal price schedule if Tugacom practices individual prices for each service. Compute the profits. b) Determine the optimal price schedule if Tugacom sells only the new bundle More-4-U, that includes the four services. Compute the profit. One former MBA student, working in the Tugacom's marketing department, made a deep marketing research study and redefined the preferences of the three groups according to the following: Type TV Internet Fixed Telephone Mobile Families 15 30 20 15 Seniors 30 20 20 10 Millennials 0 73 0 7 According to that, he wrote a report to the Marketing Director with following conclusion: "Given these results, it is clear that it will be more profitable for Tugacom to practice mixed products." bundling, by offering a price for the bundle and individual prices for one of the c) Is there a mixed bundling strategy that sustains this statement

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