Bundling and Mixed Bundling a) (4 marks). What is bundling? Under what circumstances is bundling more profitable than selling goods individually for a monopolist? Explain the cost based and entry deterrence reasons for bundling. b) (4 marks). What is mixed bundling? Give examples. Under what circumstances is mixed bundling more profitable than bundling for a monopolist? c) (12 marks) The table below indicates the willingness to pay for CDs by various types of buyers. There are N buyers of each type. Costs are $2.50 per CD. Find prices and profits when the seller offers the products (i) individually. (ii) as a bundle. (iii) individually and as a bundle (i.e. uses mixed bundling). CDS Romantic Neoclassical Tchaikovsky lover Sophisticate Berlioz/Tchaikovsky $8 $6 $9 $2 Bartok/Stravinsky $6 $6 $2 $9