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QUESTION 6.5 Joe and Bob Videogames currently produce two different video games: The Legend of Economic Man and The Dismal Science Game. Demands for the
QUESTION 6.5 Joe and Bob Videogames currently produce two different video games: The Legend of Economic Man and The Dismal Science Game. Demands for the two games are independent and the marginal cost of producing each game is $10. Through market research Joe and Bob know that they sell their video games to three different types of consumers but they are unable to engage in price discrimination. Each consumer group has 100 customers. Given the following information on each consumer group's willingness to pay for the video games will Joe and Bob's profits be higher if they bundle their two video games or should they sell them separately? What is the difference in profit between the two options? N Should they bundle? The Legend of The Dismal Economic Man Science Game Consumer Group 550 540 Consumer Group $60 535 Consumer Group 3 570 550
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