b) After conducting a costly study, an outside consultant and suggests that the company could makemore money from its customers if it sold laptops and printers together a s a bundle instead ofseparately. Is the consultant right?c) If the firm has only one customer of each type, how much does the firm each in total from purebundling? 3. A computer hardware firm sells both laptop computers and printers. It has a large inventory of laptopsand printers that it wants to sell, so it has no variable production cost. Through the magic of focusgroups, their pricing team determines that they have an equal number of three types of customers, andthese customers' reservation prices are shown in the table below:BundleCustomer Type A900Customer Type B1050Customer Type C750a) If the firm were to charge only individual prices, what prices should it set for its laptops andprinters to maximize profit? If the firm has only one customer of each type, how much does itearn in total?Laptop8001000600Printer10050150

The firm will be able to sell their product if the reservation price of the consumer is above their…

Answered: 3. A computer hardware firm sells both…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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b) After conducting a costly study, an outside consultant and suggests that the company could make
more money from its customers if it sold laptops and printers together a s a bundle instead of
separately. Is the consultant right?
c) If the firm has only one customer of each type, how much does the firm each in total from pure
bundling?

3. A computer hardware firm sells both laptop computers and printers. It has a large inventory of laptops
and printers that it wants to sell, so it has no variable production cost. Through the magic of focus
groups, their pricing team determines that they have an equal number of three types of customers, and
these customers' reservation prices are shown in the table below:
Bundle
Customer Type A
900
Customer Type B
1050
Customer Type C
750
a) If the firm were to charge only individual prices, what prices should it set for its laptops and
printers to maximize profit? If the firm has only one customer of each type, how much does it
earn in total?
Laptop
800
1000
600
Printer
100
50
150

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