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Please advise, need help! Thanks! Assume that a local nail salon offers two services, manicures, and pedicures. The salon has two customers: one customer who

Please advise, need help! Thanks!

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Assume that a local nail salon offers two services, manicures, and pedicures. The salon has two customers: one customer who wears sandals, and one customer who wears boots. The sandal wearer is willing to pay $32 for a pedicure, and $8 for a manicure. The boot wearer is willing to pay $24 for a pedicure, and $24 for a manicure. Assume that the salon can provide each of these services at a marginal cost of $2 per service. Suppose the salon is able to use tying (bundling) to price manicures and pedicures, though they may still also choose to sell each service individually. Assuming the salon sets prices for both single manicures and single pedicures optimally, what price should the salon charge for the bundle in order to maximize profits? O $32 or higher O $48 O $24 O $8 O None of the options listed is correct

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