Assignment 2 if bundle p is 260 you will be selling only one bundle in pure bundling and you can get higher profit than that . In pricing separately you can't use price discrimination so it's one price for product 1 and one price for product 2.

In mixed try selling product 2 to group 1 and bundle to the others - you would need to discount the bundle

QUESTION 2 (12.5 Points) Market research has identified three different types of consumers based on survey data. The following schedule gives the reservation prices of these customers for the two most popular products you sell. Assume that there is one customer per \"Customer Type\". Customer Type Product 1 Product 2 1 $65 $ 100 2 170 75 3 140 120 The marginal cost is $70 per product. Compare the profits from pure bundling, mixed bundling, and selling the products separately. QUESTION 3 (12.5 Points) Buyers of new cars shop for their preferred features - power seats, power steering, sunroof, ABS brakes and leather interior being a few examples. Several options combining some of these features are available from the dealership. Market research has identified three different types of consumers (roughly equal in proportion) based on survey data. The following schedule gives the reservation prices for the two most popular options at the dealership. Note that the options are mutually exclusive- i.e. the features offered in one option is not repeated in the other. MC of Option 1 is $2000 and that of Option 2 is $1000 For simplicity of calculation you can assume that there is one consumer per type. Compare the profits from pure bundling, mixed bundling, and selling the options separately. Would your answer change if customer type 3 was 50% of the market? Customer Type Option 1 Option 2 1 $6000 $5500 2 5500 4000