Suppose two types of consumers buy suits. Consumers of product A will pay $100 for a coat and $50 for pants. Consumers of product B will pay $75 for a coat and $75 for pants. The firm selling suits faces no competition and has a marginal cost of zero. The optimal commodity-bundling strategy is

Multiple Choice

• charge $125 for a suit.
• charge $150 for a suit.
• charge $100 for a suit.
• charge $75 for a suit.