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Suppose a monopoly produces commercial cameras and film. Pictures require film and one camera. Two different types of consumers have the following demand forfilm: QA=
Suppose a monopoly produces commercial cameras and film. Pictures require film and one camera. Two different types of consumers have the following demand forfilm:
QA= 100p
and
QB= 120p.
The monopoly cannot price discriminate in the market for film or the market forcameras, but it can bundle the products. The monopoly produces film at a constant marginal cost of$20 per cartridge. What price will the monopoly set for film and forcameras?
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