The optimal peak-load price for the winter is: P

W

= 1000 - 450 = $550

3.A monopoly sells two products, of which any given consumer wants to buy only one (and

places no value on the other good - i.e. uncorrelated reservation prices). If the monopoly can

prevent resale, can it increase its profit by bundling the goods, forcing the consumers to buy

both goods?

With bundling, the monopoly's profit