2. A monopoly has only three consumers whose preferences are indicated in the following Maximum willingness to pay Monitor Consumer 1 Consumer 2 Consumer 3 Marginal cost Computer 800 1100 1200 900 700 400 200 300 Identify optimal pricing under the following strategies and compare resulting profits. a) Separate pricing b) Pure bundling (selling only a bundle) c) Mixed bundling

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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2. A monopoly has only three consumers whose preferences are indicated in the following table.
Maximum willingness to pay
Monitor
700
400
200
300
Computer
800
1100
1200
900
Consumer 1
Consumer 2
Consumer 3.
Marginal cost
Identify optimal pricing under the following strategies and compare resulting profits.
a) Separate pricing
b) Pure bundling (selling only a bundle)
c) Mixed bundling
Transcribed Image Text:2. A monopoly has only three consumers whose preferences are indicated in the following table. Maximum willingness to pay Monitor 700 400 200 300 Computer 800 1100 1200 900 Consumer 1 Consumer 2 Consumer 3. Marginal cost Identify optimal pricing under the following strategies and compare resulting profits. a) Separate pricing b) Pure bundling (selling only a bundle) c) Mixed bundling
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