Suppose Andy is willing to pay $5 for a tennis ball and $10 for a tennis...
Suppose Andy is willing to pay $5 for a tennis ball and $10 for a tennis racquet, while Holly is willing to pay $12 for a tennis ball but only $8 for a tennis racquet. In addition, the retailer knows exactly what Andy and Holly are willing to pay. Which strategy should the retailer use to maximise revenues?
Select one:
a. Charge a price of $5 for a tennis ball and $8 for a tennis racket.
b. Charge a price of $12 for a tennis ball and $10 for a tennis racket.
c. Charge a price of $15 for a bundle consisting of a tennis ball and a tennis racket.
d. Charge a price of $20 for a bundle consisting of a tennis ball and a tennis racket.
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