pany was the customers, Aeisha and Maria, for its desktop computers and monitors. The average total...

Transcribed Image Text:

pany was the customers, Aeisha and Maria, for its desktop computers and monitors. The average total cost and the marginal cost of a desktop computer are equal and constant at $200. That is, the total cost of producing one computer is $200, and the total cost of producing two computers is $400 (2 x $200). Similarly, the average total cost and the marginal cost of a monitor are equal and constant at $100. The total cost of producing one monitor is $100, and the total cost of producing two monitors is $200 (2 x $100). The table presents the maximum amounts that Aleisha and Maria are willing to pay for one Dell desktop computer and for one Dell monitor. It can also be assumed that Dell will set its prices to maximize profits. Given these simplifying assumptions, calculate the total surplus if Dell does not bundle together the desktop computer and the monitor. Then compute the total surplus if Dell does bundle together the desktop computer and the monitor in one combined package. Product Desktop Aleisha's Maximum Willingness Maria's Maximum Willingness to Pay for 1 Item $973 to Pay for 1 Item $400 Computer Monitor $202 $442 Suppose Dell does not bundle together its computer and monitor. It sets separate prices for computers and monitors that result in maximin combined profits without bundling. What is the total surplus without bundling? (Round the answer to the nearest Aleisha's Maximum Willingness Maria's Maximum Willingness Product Desktop Computer Monitor to Pay for 1 Item $973 $202 to Pay for 1 Item $400 $442 Suppose Dell does not bundle together its computer and monitor. It sets separate prices for computers and monitors that result in maximin combined profits without bundling. What is the total surplus without bundling? (Round the answer to the nearest whole dollar.) surplus: S Now suppose that Dell does bundle together its computer and monitor in one package. It sets a price for this package that pany was the customers, Aeisha and Maria, for its desktop computers and monitors. The average total cost and the marginal cost of a desktop computer are equal and constant at $200. That is, the total cost of producing one computer is $200, and the total cost of producing two computers is $400 (2 x $200). Similarly, the average total cost and the marginal cost of a monitor are equal and constant at $100. The total cost of producing one monitor is $100, and the total cost of producing two monitors is $200 (2 x $100). The table presents the maximum amounts that Aleisha and Maria are willing to pay for one Dell desktop computer and for one Dell monitor. It can also be assumed that Dell will set its prices to maximize profits. Given these simplifying assumptions, calculate the total surplus if Dell does not bundle together the desktop computer and the monitor. Then compute the total surplus if Dell does bundle together the desktop computer and the monitor in one combined package. Product Desktop Aleisha's Maximum Willingness Maria's Maximum Willingness to Pay for 1 Item $973 to Pay for 1 Item $400 Computer Monitor $202 $442 Suppose Dell does not bundle together its computer and monitor. It sets separate prices for computers and monitors that result in maximin combined profits without bundling. What is the total surplus without bundling? (Round the answer to the nearest Aleisha's Maximum Willingness Maria's Maximum Willingness Product Desktop Computer Monitor to Pay for 1 Item $973 $202 to Pay for 1 Item $400 $442 Suppose Dell does not bundle together its computer and monitor. It sets separate prices for computers and monitors that result in maximin combined profits without bundling. What is the total surplus without bundling? (Round the answer to the nearest whole dollar.) surplus: S Now suppose that Dell does bundle together its computer and monitor in one package. It sets a price for this package that