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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 900 Customer Type A 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

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 900 Customer Type A 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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
Section: Chapter Questions
Problem 10E
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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
Transcribed Image Text: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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