A movie production company is determining prices for three types of movies to three movie theaters. These theaters have the following reservation prices:

theater	drama	action	romcom
A	100	70	20
B	50	110	90
C	60	40	120

Assume costs for the production company are zero, thus the firm wishes to maximize revenue.

a. Determine the optimal individual movie prices, and also determine the optimal bundle price.

b. Compare profits and comment on which is the better strategy.

c. Describe two-part pricing, and explain the similarities to bundling in improving the profits of the firm.