Home / Questions / You are selling two goods 1 and 2 to a market consisting of three consumers with reservati...
You are selling two goods, 1 and 2, to a market consisting of three consumers with reservation prices as follows:
Reservation Price ($) |
||
Consumer |
For 1 |
For 2 |
A |
20 |
100 |
B |
60 |
60 |
C |
100 |
20 |
The unit cost of each product is $30.
a. Compute the optimal prices and profits for (i) selling the goods separately, (ii) pure bundling, and (iii) mixed bundling.
b. Which strategy would be most profitable? Why?
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