The Chicago Bears offer what are essentially two products: preseason and regular season football games. They play 2 preseason and 8 regular season home games. Suppose that Fred is a serious football fan. He values the preseason games at $140 each and the regular season games at $220 each. Joe is a more casual fan. He values the preseason games at $170 each and the regular season games at $180 each. Suppose that Fred and Joe are the only fans. If the Bears sell the tickets separately, the price of a ticket to a preseason game will be S[140 The price of a ticket to a regular season game will be S 180. Total revenue that the Chicago Bears collect will be $ 3440 If the Bears bundle tickets for the two preseason and eight regular season games together, the price the team will set for the bundle is S Total revenue that the Chicago Bears collect will be $[ Should the Bears' managers sell the tickets separately or as a bundle?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The Chicago Bears offer what are essentially two products: preseason and regular season football games. They
play 2 preseason and 8 regular season home games. Suppose that Fred is a serious football fan. He values the
preseason games at $140 each and the regular season games at $220 each. Joe is a more casual fan. He values
the preseason games at $170 each and the regular season games at $180 each. Suppose that Fred and Joe are
the only fans.
If the Bears sell the tickets separately, the price of a ticket to a preseason game will be $ 140
The price of a ticket to a regular season game will be $ 180
Total revenue that the Chicago Bears collect will be $ 3440
If the Bears bundle tickets for the two preseason and eight regular season games together, the price the team will
set for the bundle is S.
Total revenue that the Chicago Bears collect will be S
Should the Bears' managers sell the tickets separately or as a bundle?
O A. The Bears should sell the tickets separately because they earn $108 more revenue by selling separately.
O B. The Bears should sell the tickets separately because they earn $120 more revenue by selling separately.
OC. The Bears should sell the tickets as a bundle because they earn $108 more revenue with bundle pricing.
O D. The Bears should sell the tickets as a bundle because they earn $120 more revenue with bundle pricing.
Transcribed Image Text:The Chicago Bears offer what are essentially two products: preseason and regular season football games. They play 2 preseason and 8 regular season home games. Suppose that Fred is a serious football fan. He values the preseason games at $140 each and the regular season games at $220 each. Joe is a more casual fan. He values the preseason games at $170 each and the regular season games at $180 each. Suppose that Fred and Joe are the only fans. If the Bears sell the tickets separately, the price of a ticket to a preseason game will be $ 140 The price of a ticket to a regular season game will be $ 180 Total revenue that the Chicago Bears collect will be $ 3440 If the Bears bundle tickets for the two preseason and eight regular season games together, the price the team will set for the bundle is S. Total revenue that the Chicago Bears collect will be S Should the Bears' managers sell the tickets separately or as a bundle? O A. The Bears should sell the tickets separately because they earn $108 more revenue by selling separately. O B. The Bears should sell the tickets separately because they earn $120 more revenue by selling separately. OC. The Bears should sell the tickets as a bundle because they earn $108 more revenue with bundle pricing. O D. The Bears should sell the tickets as a bundle because they earn $120 more revenue with bundle pricing.
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