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Question 8 You operate a Caribbean destination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay.

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Question 8 You operate a Caribbean destination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay. It is expected that in 2021 there will be some return to more normal travel. You will re- launch your advertising for 2021 announcing that customers will be able to do both for one price. Your marginal cost per customer across both tours is $4800. Customer Preferences $1000 $3.000 $2.000 $6.000 Given the preferences, would bundling improve profits over the high- price strategy? Support your conclusion by showing if (by how much) profits differ under each strategy, bundle v high price

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