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Category > Economics Posted 05 Jun 2017 My Price 6.00

Customer Product A product b

Use the following table to answer the following questions:

 

Customer Product A product b

Reservation Price Reservation Price

1 1,000 200

2 800 400

Marginal Cost 500 100

 

 

 

a) If the firm does not bundle the products, what single price should the firm charge for product

A to maximize profit? And what is the firm’s profit, assume that MC = AC?

b) If the firm does not bundle the products, what single price should the firm charge for product

B to maximize profit?

c) If the firm bundles the products, what single price should the firm charge for the bundle to

maximize profit? And what is the firm’s profit, assume that MC = AC?

Answers

SuperTutor
(15)
Status NEW Posted 05 Jun 2017 07:06 AM My Price 6.00

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