Question
The following schedule gives the reservation prices of these customers for the two most popular products you sell. Assume that there is one customer per
The following schedule gives the reservation prices of these customers for the two most popular products you sell.
Assume that there is one customer per "Customer Type".
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Customer TypeProduct 1Product 2
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1$80$ 120
218525
3100100
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and the marginal cost is 50 per product,
Compare the profits from pure bundling, mixed bundling, and selling the products separately. Note that price discrimination is not possible.
Which of the strategies would you choose to maximize profits? I need all calculations with the explanation. then Point out the values of any discounts or dummy prices.
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