Question

Suppose there are two types of consumers for cell phones and accessories (cases, extra chargers, etc.) Consumers of type A are willing to pay $750 for a phone and $40 for the accessories. Consumers of type B are willing to pay $720 for a phone and $90 for the accessories. The firm selling these products faces no competition and has a marginal cost of zero. What is the optimal commodity bundling strategy? charge $840 for a phone and accessories charge $760 for a phone and accessories charge $810 for a phone and accessories charge $790 for a phone and accessories

Answer 1

willingness to for Type A $750 for phone $ o for accessones. $720 $90 for Accessories to willingness for phone for : pay Type B both the consumers = 750+40=790 - 120+ 9 = flo The maximum bundling price for which will buy ir $ 790 Since; willingness to pay for type A for bundle willingnen nes to pay for Type B for bundle so if the seller charges $190 for bundle both the consumer will by bay profit will be be $1580 profit $790X2= $1580 and