Problem 4. (Bundling) Consider a case where there are three consumers with respective valuations for products X and Y as given in the table. Both products X and Y are produced by the same monopolist. Product X Product Y Consumer 1 4 Consumer 2 3 Consumer 3 4 a) What is the best that the monopolist can do if the products are sold separately? b) Consider the case of pure bundling in which the monopolist sells one unit of each good in a package for a single price. What is the best that the monopolist can do in this case? c) Now consider the case of mixed bundling in which the monopolist sells one unit of each good in a package for a single price but also offers the products separately. What is the best that the monopolist can do in this case? d) Finally, consider the same setup except that the valuations of consumer 2 are 5 for both goods, not 3. what is the best that the monopolist can do in case it sells the products separately, under pure bundling and mired bundling?

Problem 4. (Bundling) Consider a case where there are three consumers with respective valuations for products X and Y as given in the table. Both products X and Y are produced by the same monopolist. Product X Product Y Consumer 1 4 Consumer 2 3 Consumer 3 4 a) What is the best that the monopolist can do if the products are sold separately? b) Consider the case of pure bundling in which the monopolist sells one unit of each good in a package for a single price. What is the best that the monopolist can do in this case? c) Now consider the case of mixed bundling in which the monopolist sells one unit of each good in a package for a single price but also offers the products separately. What is the best that the monopolist can do in this case? d) Finally, consider the same setup except that the valuations of consumer 2 are 5 for both goods, not 3. what is the best that the monopolist can do in case it sells the products separately, under pure bundling and mired bundling?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Linda deposits $60,000 into an account that pays simple interest at a rate of 6% per year. Bob deposits $60,000 into an account that also pays 6% interest per year. But it is compounded annually. Find the interest Linda and Bob earn during each of the first three years. Then decide who earns more interest for each year. Assume there are no withdrawals and no additional deposits. Year First Second Third Interest Linda earns (Simple interest) $3600 $3600 $3600 Interest Bob earns (Interest compounded annually) $3600 $3960 $4176 Who earns more interest? Linda earns more. Bob earns more. They earn the same amount. Linda earns more. Bob earns more. They earn the same amount. Linda earns more. Bob earns more. O They earn the same amount. X S
It's October 21 and the air conditioner at the Brown household has just gone out. Fortunately, they will not need it again until June 21. After reviewing their finances, it has been determined that they cannot save for this purchase until January (ouch!). If a new air conditioner costs $3,500 and they deposit funds into the account on the 21st day of every month, how much does the family need to save each month? Assume MARR is 1.25% per month and they will not make any deposits in June. O $660 O $680 O $670 O $690
You are going to put $X into an account each year for 5 years, beginning in Year 1. Then, from Years 9 through 12, you will withdraw $2,000 per year. If the account has an annual interest rate ? of 11%, what is X? 1054.67 X
Solve question no.8 and show a clear and readable solution.Note: The answer is given on the bottom side of the number, just show the solution on how to get it. Also, please write the given and the required.Thanks!!!
If you take four (4) $100 bills out of your secret hiding place and deposit them into your savings account at your local bank, M1 will __________ and M2 will _________. Increase $400; increase $400 Decrease $400; decrease $400 Increase $400; decrease $400 Decrease $400; increase $400
Determine the equivalent value of x from the cash flow indicated in the diagram on the left side. 2 G₁ 7 59 10 i% X
Gabriel borrowed P 20,000 from his friend and agrees to pay at the end of 90 days under 8% simple interest rate. What is the future amount of the borrowed money? P 22400 P 20400 P 12200 O P 10200
What will a $90,000 house cost 10 years from now if the price appreciation for homes over that period .averages 3% compounded annually?
If $4,000 is borrowed today and $8,955 is paid back in 10 years, what interest rate compounded annually has been earned? % Round entry to one decimal place. Tolerance is ±0.2.
Question 3 You are looking at purchasing a new computer for your four-year undergraduate program. Brand 1 costs $4,040 now, and you expect it will last throughout your program without any upgrades. Brand 2 costs $2,440 now, and will need an upgrade at the end of two years, which you expect to be $1,725. With an 8% annual interest, compounded monthly, which is the less expensive alternative, if they provide the same level of service and will both be worthless at the end of the four years? [NOTE: In general and unless asked for otherwise, comparisons of project should be conducted in present worth dollars] Which Brand is preferred (enter either '1' or '2')? How much will you save by purchasing your preferred brand over the other? (Round your answer to the nearest dollar and enter it as a positive number) $
You know that paying yourself by depositing money in a savings account is a prudent start to your retirement plan. You determined that, based on your other obligations, you can save 6,375.00 per year via an annual, single year-end deposit. You are 35 years old now, so your money will grow for the next 30 years until you turn 65. You will open a savings account at the Wells Fargo branch near your home. Its savings accounts are paying 6% interest. The following table shows the future value factors for various periods and interest rates: Future Value of an Annuity Factor Year 2% 3% 5% 6% 8% 9% 10% 10 10.950 11.460 12.578 13.180 14.487 15.190 15.937 12 13.412 14.190 15.917 16.870 18.977 20.140 21.384 15 17.293 18.600 21.578 23.270 27.152 29.360 31.772 20 24.297 26.870 33.066 36.780 45.762 51.160 57.274 25 32.030 36.460 47.726 54.860 73.105 84.700 98.346 30 40.567 47.570 66.438 79.060 113.282 136.300 164.491 35 49.994 60.460 90.318 111.430 172.314 215.700…
John is a very cost-conscious investor. His rule of thumb is that it costs $200 per year, starting in the first year of vehicle life to maintain an automobile. This expense increases by $200 each year over the life of the car. John is now considering the purchase of a four-year old car with 40,000 miles on it for $7,000. How much money will John have to set aside now to pay for maintenance (as a lump sum) if he keeps this car for eight years? John's interest rate is 4% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year. John will have to set aside $ to pay for maintenance. (Round to the nearest dollar.)