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there are two types of customers). The table beIOw shows tne willinghess of each customer to pay for each service or a bundle. ASsume the Costs of selling more service to a customer are virtually such that the firm attempts to maximize revenue). Explain why the firm does not use mixed bundling. Throughout, if consumers are indifferent between purchases, then assume they make the purchase that benefits the firm. First, let consumer valuations be positvely correlated. Internet $120 $110 $110 Television Consumer 1 Consumer 2 Profit-maximizing price $100 $40 100 Bundle $220 $150 $150 Profit from selling the goods at separate prices is Kseparate =SO. profit from selling the goods at the bundled price is oundied =S. and profit from selling the goods at the profit-maximizing separate prices and at the profit-maximizing bundled price is Amixed =$. (Enter numeric responses using integers.)

there are two types of customers). The table beIOw shows tne willinghess of each customer to pay for each service or a bundle. ASsume the Costs of selling more service to a customer are virtually such that the firm attempts to maximize revenue). Explain why the firm does not use mixed bundling. Throughout, if consumers are indifferent between purchases, then assume they make the purchase that benefits the firm. First, let consumer valuations be positvely correlated. Internet $120 $110 $110 Television Consumer 1 Consumer 2 Profit-maximizing price $100 $40 100 Bundle $220 $150 $150 Profit from selling the goods at separate prices is Kseparate =SO. profit from selling the goods at the bundled price is oundied =S. and profit from selling the goods at the profit-maximizing separate prices and at the profit-maximizing bundled price is Amixed =$. (Enter numeric responses using integers.)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Suppose there are two customers (or types of customers). The table below shows the willingness of each customer to pay for each service or a bundle. Assume the marginal and average costs of selling one more service to a customer are virtually zero (such that the firm attempts to maximize revenue). Explain why the firm does not use mixed bundling. Throughout, if consumers are indifferent between purchases, then assume they make the purchase that benefits the firm. First, let consumer valuations be positvely correlated. Internet Television Bundle Consumer 1 Consumer 2 Profit-maximizing price $120 $110 $110 $100 $40 100 $220 $150 $150 Profit from selling the goods at separate prices is Tseparate profit from selling the goods at the bundled price is Tbundled = and profit from selling the goods at the profit-maximizing separate prices and at the profit-maximizing bundled price is Tmixed = $. (Enter numeric responses using integers.) Now consider an example where consumer valuations are negatively correlated. Why doesn't the firm use mixed bundling? Internet Television Bundle $120 $100 $100 $100 $120 $100 $220 $220 $220 Consumer 1 Consumer 2 Profit-maximizing price Profit from selling the goods at separate prices is Tseparate profit from selling the goods at the bundled price is Tbundled = and profit from selling the goods either at the profit-maximizing separate prices or at the profit-maximizing bundled price is Tmixed = $
Transcribed Image Text:Suppose there are two customers (or types of customers). The table below shows the willingness of each customer to pay for each service or a bundle. Assume the marginal and average costs of selling one more service to a customer are virtually zero (such that the firm attempts to maximize revenue). Explain why the firm does not use mixed bundling. Throughout, if consumers are indifferent between purchases, then assume they make the purchase that benefits the firm. First, let consumer valuations be positvely correlated. Internet Television Bundle Consumer 1 Consumer 2 Profit-maximizing price $120 $110 $110 $100 $40 100 $220 $150 $150 Profit from selling the goods at separate prices is Tseparate profit from selling the goods at the bundled price is Tbundled = and profit from selling the goods at the profit-maximizing separate prices and at the profit-maximizing bundled price is Tmixed = $. (Enter numeric responses using integers.) Now consider an example where consumer valuations are negatively correlated. Why doesn't the firm use mixed bundling? Internet Television Bundle $120 $100 $100 $100 $120 $100 $220 $220 $220 Consumer 1 Consumer 2 Profit-maximizing price Profit from selling the goods at separate prices is Tseparate profit from selling the goods at the bundled price is Tbundled = and profit from selling the goods either at the profit-maximizing separate prices or at the profit-maximizing bundled price is Tmixed = $
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