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Assume that a monopolist produces two software programs, one to solve math problems ( M ) and the other to solve statistics problems ( S
Assume that a monopolist produces two software programs, one to solve math problems M and the other to solve statistics problems S There are only three consumers A B and C who are interested in them. Their preferences are as follows:
i Consumer A values M at $ and S at $
ii Consumer B values at $ and at $
iii. Consumer C values M at $ and S at $
A Are demand values among consumers negatively or positively correlated?
B If the firm's average and marginal cost is will it pay to sell and separately or as a pure bundle?
C How would your answer to part change if consumer demand values were negatively correlated?
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