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You are producing two complimentary products (A and B). It costs $1 to make Product A, $2 to make Product B, and $3 to make

You are producing two complimentary products (A and B). It costs $1 to make Product A, $2 to make Product B, and $3 to make the bundle.

After some marketing research is conducted, you have the following information about the benefit (in dollars) of your products and size (number of people) for each segment.

Customer Segment Size Perceived Benefit (A) Perceived Benefit (B) Perceived Benefit (A+B)
A 10 1 10 11
B 20 4 9 13
C 30 6 8 14
D 20 7 8 15
E 10 8 4 12

2a) What is the maximum profit and prices under pure component pricing?

2b) What is the maximum profit and price under pure bundling?

2c) What is the maximum profit and prices under mixed bundling?

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