To maximize profit using individual prices, the firm should charge a price for laptops of p = 650 and a price for printers of p= 100 (Enter your responses as whole numbers.) In turn, profit is =$ 2150 (Enter your response as a whole number.) After conducting a costly study, an outside consultant claims that the company could make more money from its customers if it sold laptops and printers togethe as a bundle instead of separately. Is the consultant right? Assume again that the firm has one customer of each type and that marginal cost is zero. How much does the firm earn in total from pure bundling? The profit-maximizing pure bundle price is $ (Enter your response as a whole number.)
To maximize profit using individual prices, the firm should charge a price for laptops of p = 650 and a price for printers of p= 100 (Enter your responses as whole numbers.) In turn, profit is =$ 2150 (Enter your response as a whole number.) After conducting a costly study, an outside consultant claims that the company could make more money from its customers if it sold laptops and printers togethe as a bundle instead of separately. Is the consultant right? Assume again that the firm has one customer of each type and that marginal cost is zero. How much does the firm earn in total from pure bundling? The profit-maximizing pure bundle price is $ (Enter your response as a whole number.)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
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Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...
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![A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal
number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below.
Customer A
Customer B
Customer C
and a price for printers of
Laptop
$750
$950
$650
Assume for simplicity the marginal cost of production for laptops and printers is zero.
If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for
simplicity that the firm has only one customers of each type, how much does it earn in total?
To maximize profit using individual prices, the firm should charge a price for laptops of
P= 650
P= 100
Printer
$100
$50
$150
Bundle
$850
$1,000
$800
(Enter your responses as whole numbers.)
In turn, profit is = $ 2150 (Enter your response as a whole number.)
After conducting a costly study, an outside consultant claims that the company could make more money from its customers if it sold laptops and printers together
as a bundle instead of separately. Is the consultant right? Assume again that the firm has one customer of each type and that marginal cost is zero. How much
does the firm earn in total from pure bundling?
The profit-maximizing pure bundle price is $
(Enter your response as a whole number.)
P
slong](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F805991fa-0820-4b40-8f5a-39474b333a32%2Fb89d5b77-68ff-4da7-b293-165008bfc340%2Fgkrldn6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal
number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below.
Customer A
Customer B
Customer C
and a price for printers of
Laptop
$750
$950
$650
Assume for simplicity the marginal cost of production for laptops and printers is zero.
If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for
simplicity that the firm has only one customers of each type, how much does it earn in total?
To maximize profit using individual prices, the firm should charge a price for laptops of
P= 650
P= 100
Printer
$100
$50
$150
Bundle
$850
$1,000
$800
(Enter your responses as whole numbers.)
In turn, profit is = $ 2150 (Enter your response as a whole number.)
After conducting a costly study, an outside consultant claims that the company could make more money from its customers if it sold laptops and printers together
as a bundle instead of separately. Is the consultant right? Assume again that the firm has one customer of each type and that marginal cost is zero. How much
does the firm earn in total from pure bundling?
The profit-maximizing pure bundle price is $
(Enter your response as a whole number.)
P
slong
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