Samantha Tylan Mikayla Simran Printed textbook $70 $80 $20 $40 Code for online resources Bundle $20 $30 $50 $40 What is the profit-maximizing price for textbooks and codes under individual pricing (no bundling)? What is the profit-maximizing price of a bundle (textbook+code) under pure bundling (only bundles can be sold)? Is it true that publishers sell bundles, as opposed to individual products and services, to make consumers better off? Discuss.

Samantha Tylan Mikayla Simran Printed textbook $70 $80 $20 $40 Code for online resources Bundle $20 $30 $50 $40 What is the profit-maximizing price for textbooks and codes under individual pricing (no bundling)? What is the profit-maximizing price of a bundle (textbook+code) under pure bundling (only bundles can be sold)? Is it true that publishers sell bundles, as opposed to individual products and services, to make consumers better off? Discuss.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You are selling printed textbooks and codes for online resources. Your marginal cost is zero and your
customers' willingness to pay is listed below:
Printed textbook
$70
$80
$20
$40
Code for online resources
Bundle
Samantha
Tylan
Mikayla
Simran
$20
$30
$50
$40
What is the profit-maximizing price for textbooks and codes under individual pricing (no bundling)?
What is the profit-maximizing price of a bundle (textbook+code) under pure bundling (only bundles can
be sold)?
Is it true that publishers sell bundles, as opposed to individual products and services, to make consumers
better off? Discuss.

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Step 1: Define marginal cost, individual pricing, bundle pricing

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Step 3: b) Determine bundle pricing

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Step 4: c) Discussion on whether publishers sell bundles

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