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A monopolist Cable TV provider makes higher profits by bundling News channels and Kids Entertainment channels together rather than selling these channels separately to subscribers.

A monopolist Cable TV provider makes higher profits by bundling News channels and Kids Entertainment channels together rather than selling these channels separately to subscribers. But this is mainly to promote News channels to subscribers. This implies that

a) Kids channels subscribers has higher willingness to pay than News channels subscribers

b) Demand elasticity at the monopoly price is higher for News channels than for Kids channels.

c) The Dead-Weight Loss due to monopoly is lower in the market for News channels than Kids channels

d) All of the above.

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