Softie-ware Corp makes two products, Wordy, a word processor, and Numbro, a spreadsheet. There are two kinds of potential customers out there, poets and quants. In total there are 100 poets and 100 quants, who each attach the following reservation prices to the two softwares:

	Wordy	Numbro
Poet	75	50
Quant	40	70

Marginal costs are zero. Fixed costs are 8,500 for Wordy and 10,500 for Numbro.

a. Suppose Softie-ware Corp sells the two products separately. What are the profit maximizing prices for the two products, and what is the maximum profit they can obtain?

b.How much is it worth to the 200 consumers, collectively, to have obtain these softwares? (Put another way, how much consumer surplus would they experience if they obtained these softwares free of charge?) And how does this compare to the cost of bringing these products to market?

c. Assuming that Softie-ware cannot charge different prices to different consumers, can you think of a pricing approach that would generate more profit than selling separately?