Please explain how you determined the bundle prices, net profits, maximum profit from pure bundle policy and maximum profit from tying policy. Continuing the analysis of Ginnie's Gym Refreshment Bar: Q2 Table   Hydration Power Drink Satisfying Smoothie Bundle Price Net Profit Early 7.00 5.00     Late 6.00 10.00       Calculate the bundle prices and net profits. Determine which bundle price will maximize net profit. Show the steps to support the conclusion. Determine the net profit from a tying strategy. Show the steps to support the conclusion.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 12CQ
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Please explain how you determined the bundle prices, net profits, maximum profit from pure bundle policy and maximum profit from tying policy.

Continuing the analysis of Ginnie's Gym Refreshment Bar:

Q2 Table

  Hydration Power Drink Satisfying Smoothie Bundle Price Net Profit
Early 7.00 5.00    
Late 6.00 10.00    

 

  1. Calculate the bundle prices and net profits.
  2. Determine which bundle price will maximize net profit. Show the steps to support the conclusion.
  3. Determine the net profit from a tying strategy. Show the steps to support the conclusion. 
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