Question
Consider a firm that sells two products A and B and faces two customers. Customer Product A - Reservation Price Product B - Reservation Price
Consider a firm that sells two products A and B and faces two customers.
Customer Product A - Reservation Price Product B - Reservation Price
1 1,000 200
2 800 400
Marginal Cost 500 100
A) What are the prices if the firm sells both products separately?
Price Product A:
What are the prices if the firm sells both products separately?
Price Product B:
B) What is the price if the firm sells both products in a bundle?
Bundle Price:
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Economics And The Environment A Materials Balance Approach
Authors: Allen V Kneese, Robert U Ayres, Ralph C D'Arge
1st Edition
1317402251, 9781317402251
