Hello,

can you please explain me in details how to resolve the below? thank you in advance!

98) (P)Trisha's fashion boutique sells earrings and pendants. Trisha has two types of customers. Their willingness-to-pay for earrings and pendants are given below. If Trisha bundles the earrings and pendants together, could she increase revenue?

Earrings Pendant

TypeI 100 65

TypeII 90 75

1. You are selling cheese and bier, to a market consisting of 100 consumers Type I and 200 consumers Type II with reservation prices as follows:

Reservation Price ($)

Consumer Cheese Bier

Type I (100) 5 6

Type II (200) 7 5

The unit cost of each product is $2. Compute the optimal prices and profits for (i) selling the goods separately, (ii) pure bundling, and (iii) mixed bundling. [5+5+5] In the case of mixed bundling price of goods sold separately should be reduced by $0,05.