A telephone company offers two services: landlines and Internet. There are two types of customer demographics for these services. One customer demographic values the Internet service at $40/month, but only values landlines at $10/month. The other customer demographic values the Internet service less, at $30/month, but values the landline telephone service at $40/month. The two customer demographics are each comprised of 100 persons. Internet and landlines each cost $30/month to supply to each customer who purchases them (so the cost to supply both products to a customer is $60/month).

Which pricing scheme should the telephone company adopt?

Price Internet at $30/month and landlines at $40/month.

Price Internet at $40/month and landlines at $40/month.

Bundle the two goods at a combined price of $50/month.

Bundle the two goods at a combined price of $70/month.