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Bundling is not always superior to non-bundling. Consider a telecom firm that offers both phone service and high-speed modem service. It has two types of
Bundling is not always superior to non-bundling. Consider a telecom firm that offers both phone service and high-speed modem service. It has two types of consumers who differ in their willingness to pay for a monthly rental fee for either service. Determine for what values of a bundling would be more profitable than not bundling.
Talkers | Hackers | |
Phone Service | 30 | a |
High-Speed Connection | 16 | 24 |
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