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A monopolist produces both Good A and Good B. There are two types of consumers. Enthusiasts are willing to pay 10 for Good A and
A monopolist produces both Good A and Good B. There are two types of consumers. Enthusiasts are willing to pay 10 for Good A and 7 for Good B. Marginals are willing to pay 1 for Good A and 6 for Good B. There are 10 of each type of consumer. The monopolist has a choice between bunding the two goods together, or pricing them individually. a. The Willingness to pay is NOT negatively correlated, and the firm should bundle. O b. The Willingness to pay is NOT negatively correlated, and the firm should price items individually. O c. The Willingness to pay is negatively correlated, and the firm should price items individually. O d. The Willingness to pay is negatively correlated, and the firm should bundle
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