You are the mayor of your hometown, and one day you arrive at city hall to find angry voters demonstrating against you.  They are mad because your office created a garbage collection monopoly by awarding only one company a permit to collect garbage in your town.  The voters claim that the company is overcharging and providing poor service.  They want you to do something that will lower rates and improve service.  You call your staff economst, who presents evidence that there are substantial economies of scale to garbage collection.  What are your options if you are interested in efficiency?

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Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.