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Suppose there are 5 types of consumers: Type A. Type E. Type C. Type D. and Type E. There are 3.000 ofeach type. Two software
Suppose there are 5 types of consumers: Type A. Type E. Type C. Type D. and Type E. There are 3.000 ofeach type. Two software products are sold by a monopolist spreadsheets and word processing. Assume The marginal cost of producing ea ch program is $33. wnnnummnur -mo--:o:- 3.000 . _ \"14: : --E_ Instructions: Round your answers to The nearest whole number. a. What will be the prot-maximizing bundle price? $ - b. IWhat is profit under This pricing policy? 33- |:| - c. How will prot from This pricing policy compare to prot under independent pricing ofthe two goods? 1.I'Ii'hen pricing independently. The profit-maximizing price for spreadsheets is $ and the prot-maximizing price for word processing is $ . d. IWhat is profit under independent pricing\"? as |:| - e. Now consider the possibility of offering a bundle and selling the two programs separately. Can you find prices for the bundle and the two individual products that will yield a greater proTit than selling either The bundle alone or the individual products alone? No V
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