The New York theater sells tickets each season for one musical and one theatrical play. Three types of consumers, in equal proportion, are willing to pay for these performances as follows.

Type A consumers: $60 for the musical, $15 for the play;

Type B consumers: $35 for the musical, $30 for the play;

Type C consumers: $10 for the musical, $40 for the play;

For each consumer, the willingness to pay for both the musical and the play is the sum of the willingnesses to pay for the individual performances.

(a) What is the revenue maximizing component pricing scheme in which tickets are only sold separately for each show? How much revenue is earned per triplet of consumers?

(b) What is the revenue maximizing pure bundling pricing scheme in which the theater only sells a bundle providing tickets for both shows? How much revenue is earned per triplet of consumers?

(c) What is the revenue maximizing mixed bundling scheme in which the theater sells tickets for each show individually and also offers a bundled price for both shows? How much revenue is earned per triplet of consumers?

(d) Why does bundling increase revenues?