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Consider a firm that produces two goods of independent demand

Question : Consider a firm that produces two goods of independent demand : 6742

Consider a firm that produces two goods of independent demand and zero marginal cost. The reservation prices of the consumers are:

Determine which strategy maximizes the profit for the company considering:

(a) selling separately the goods,

(b) pure bundling and

(c) mixed bundling.

Show your calculations to support your analysis.

Consumers

Good 1

Good 2

A

40

150

B

40

120

C

100

70

D

60

30

 

Solution
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Economics 1 Year Ago 141 Views
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