This set of questions concern indirect pricing. (versioning)

Use the attached image to answer questions below. MC of printer=$50 MC of cartridge=$25

1. Assume first that HP sells two bundles:

Bundle A, containing one printer+one cartridge.

Bundle B, containing one printer+two cartridges.

What price should HP charge for Bundle A?

0, 80, 100, 120, 180 or 200?

2. Assume first that HP sells two bundles:

Bundle A, containing one printer+one cartridge.

Bundle B, containing one printer+two cartridges.

What price should HP charge for Bundle B?

0, 80, 100, 120, 180 or 200?

3.Assume now that HP sells the printer and cartridges separately.

Using your answers from the previous two questions:

What price should HP charge for theprinter?

0,20,40,60,80 or 100?

4.Assume now that HP sells the printer and cartridges separately.

Using your answers from the previous two questions:

What price should HP charge forone cartridge?

5. In your answers above, HP prices the printer:

• Below marginal cost
• At marginal cost
• Above marginal cost

In your answers above, HP prices the cartridge:

• Below marginal cost
• At marginal cost
• Above marginal cost