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