Bundling does not always help the monopolist. To see this, suppose that Comcast provides both phone and internet service to two types of custumers, with valuations Phone $30 Sa Internet $16 $24 Determine the values of a such that bundling is more profitable than not bundling. HINT: you need to tell me which strategy is more profitable for different ranges of a (e.g., 0 < a < 9, a = 9,9 < a < 14, a > 14) where I have chosen 9 and 14 randomly. The textbook answer has five different ranges, where either pure bundling gives higher profits than selling separates, or vice-versa, or they are equal. 3. [also from Pepall et al.] Electrofax was an early supplier of equipment for making 'photocopies'. Thier machines required paper coated with wax film. Electrofax charged a low price for machines, but a high price for paper (4 cents per sheet, compared with a marginal cost of 1 cent). (a) Explain (in words) why Electrofax might have wanted to use this pricing policy as a monopolist. (b) Explain (in words) what actions Electrofax may have wanted to take when some independent firms tried to supply alternative papers to be used in Electrofax machines.