How will profit from this pricing policy compare to profit under independent pricing of the two goods?

Suppose there are 5 types of consumers: Type A Type B Type C Type D and Type E. There are 3000 Show more Suppose there are 5 types of consumers: Type A Type B Type C Type D and Type E. There are 3000 of each type. Two software products are sold by a monopolist: spreadsheets and word processing. Assume the marginal cost of production is $0. Willingness to Pay Willingness to Pay Willingness to Pay Consumer Type Number Spreadsheet Word Processor Both A 3000 200 0 200 B 3000 70 30 100 C 3000 50 50 100 D 3000 30 70 100 E 3000 0 200 200 Instructions: Round your answers to the nearest whole number. a. What will be the profit-maximizing bundle price? $. b. What is profit at this pricing policy? $. c. How will profit from this pricing policy compare to profit under independent pricing of the two goods? When pricing independently the profit-maximizing price for spreadsheets is $ and the profit-maximizing price for word processing is $. d. What is profit under independent pricing? $. Show less

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