The following table presents the valuations that 5 different consumers have for 2 different products. The production costs are $ 10 per unit of good A and $10 per unit of good B. The firm producing them can choose to price them independently or using a bundling strategy. What is the profit the firm will realize, if it prices optimally?

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Chapter11: Price And Output Determination: Monopoly And Dominant Firms
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VALUATIONS Product A
Consumer 1
5
Consumer 2
10
Consumer 3
Consumer 4
Consumer 5
50
80
95
Product B
95
90
50
20
5
Transcribed Image Text:VALUATIONS Product A Consumer 1 5 Consumer 2 10 Consumer 3 Consumer 4 Consumer 5 50 80 95 Product B 95 90 50 20 5
The following table presents the valuations that 5 different
consumers have for 2 different products. The production costs are $
10 per unit of good A and $10 per unit of good B. The firm
producing them can choose to price them independently or using a
bundling strategy. What is the profit the firm will realize, if it prices
optimally?
Transcribed Image Text:The following table presents the valuations that 5 different consumers have for 2 different products. The production costs are $ 10 per unit of good A and $10 per unit of good B. The firm producing them can choose to price them independently or using a bundling strategy. What is the profit the firm will realize, if it prices optimally?
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