)It is common practice for the National Hockey League to offer season subscription packages to TV viewers via cable and satellite providers. Suppose that this year the NHL is considering the idea of including the preseason games into the regular season packages.

The pool of NHL followers consists of an equal number of 'hard-core' and 'regular' fans. (For concreteness let's say one million households are hard core and one million are regular.) The following table shows how much each type fans value the regular season and the pre-season packages.

Regular season

Preseason

Hard core fans

$160

$40

Regular fans

$120

$10

a. (2 pts) From the NHL point of view, what is the best price to charge for a regular season TV package?

b. (3 pts) What is the maximum amount of revenue the NHL can get if it offers the regular season package and the preseason games package separately from each other? Show your work.

c. (4 pts) Given the fans' preferences outlined in the table, can the NHL increase its revenue by bundling the preseason and the regular season together and selling them as one package?Once again, show your work.