(c) Finally, let's assume you've been given the following information about maximum willingnessto pay for a computer and a monitor:WTP MonitorsWTP Computer$1,100Chloe$500Evan$600$700MC$400$200(1) What is the highest profit you can make with no bundling? Who buys what?(2) What is the highest profit you can make with pure bundling? Who buys what?

Bundling is not going to help if the consumers demand are positively related.

(c) Finally, let's assume you've been given the following information about maximum willingness to pay for a computer and a monitor: WTP Computer $1,100 $600 WTP Monitors Chloe $500 Evan $700 $200 MC $400 (1) What is the highest profit you can make with no bundling? Who buys what? (2) What is the highest profit you can make with pure bundling? Who buys what?

(c) Finally, let's assume you've been given the following information about maximum willingness to pay for a computer and a monitor: WTP Computer $1,100 $600 WTP Monitors Chloe $500 Evan $700 $200 MC $400 (1) What is the highest profit you can make with no bundling? Who buys what? (2) What is the highest profit you can make with pure bundling? Who buys what?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 9PA

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