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Q4. There are four consumers A, B, C and D who can potentially buy three goods-1, 2, and 3. All three goods are made by

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Q4. There are four consumers A, B, C and D who can potentially buy three goods-1, 2, and 3. All three goods are made by a monopolist who incurs a production cost of $40, $40 and $80, respectively, for these goods. Consumers' reservation prices for these goods are as shown in the following table: 1 2. 3 A 150 90 60 B 90 90 90 60 80 100 D 80 60 120 (a) [3] What are the optimal prices under a la carte pricing? (b) [2] What is the optimal price under pure bundling? (c) [8] What are the optimal prices under mixed bundling? (d) [6] Calculate aggregate Consumer Surplus in each of (a), (b) and (c) (e) [6] Between (a), (b) and (c) which creates the highest total surplus

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