7. You are the manager of a firm that produces products X and Y. You know the following reservation prices: Consumer 1 2 3 Product X 90 70 40 Product Y 60 140 160 a. What are your profits if you charge 40 for product X and 60 for product Y? b. What are your profits if you charge 150 for a bundle containing one unit of product X and one unit of product Y? c. What are your profits if you charge 210 for a bundle containing one unit of X and one unit of Y, but also sell the products individually at a price of 90 for X and 160 for Y?

7. You are the manager of a firm that produces products X and Y. You know the following reservation prices: Consumer 1 2 3 Product X 90 70 40 Product Y 60 140 160 a. What are your profits if you charge 40 for product X and 60 for product Y? b. What are your profits if you charge 150 for a bundle containing one unit of product X and one unit of product Y? c. What are your profits if you charge 210 for a bundle containing one unit of X and one unit of Y, but also sell the products individually at a price of 90 for X and 160 for Y?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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