In the following table, we consider how Alex, Tyler, and Monique would fare under a la carte pricing and under bundling for cable TV when there are two channels: Lifetime and the Food Network. Alex and Tyler like to watch Project Runway, so they each place a higher value on Lifetime than on the Food Network. Monique is practicing to be an Iron Chef in her second life, so she places a higher value on the Food Network than on Lifetime. Maximum Willingness to Pay for Cable TV Alex Tyler Monique Lifetime $10 $15 $3 The Food Network $7 $4 $9 The Bundle $17 $19 $12 a. If the channels are priced individually, the most protable prices for the cable operator turn out to be $10 for Lifetime and $7 for the Food Network. At these prices, buy Lifetime and buy mm. What is total profit? $ b. Let's just check to see if these prices really are profit-maximizing. If the cable company raised Lifetime to a price of $1 1 and the Food Network to a price of $8, what is total profit? Total profit: $ c. At the profit-maximizing prices, the total consumer surplus for the three of them would be $d. Now consider what happens under bundling: Customers get a take-it-or-leave-it offer of both channels or nothing at all. The profit-maximizing bundle price turns out to be $12, and at that price, Alex, Tyler, and Monique all subscribe. The consumer surplus at this price is $ The profit in this case is $ e. And, most important, if the cable company raised the price to $13, the profit would be $