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Firms that have market power can apply the mixed bundling strategy to increase their profits. Some...

Firms that have market power can apply the mixed bundling strategy to increase their profits. Some researchers claim that even if a firm does not have any market power, i.e., even in a competitive market, firms can use mixed bundling (for example, those small restaurants/fast food restaurants located in the shopping malls). Explain why and how firms in competitive markets may apply mixed bundling. Provide a numerical example to prove your case.

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Rahul Sunny answered 7 months ago
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Firms that have market power can apply the mixed bundling strategy to increase their profits. Some...
Firms that have market power can apply the mixed bundling strategy to increase their profits. Some researchers claim that even if a firm does not have any market power, i.e., even in a competitive market, firms can use mixed bundling (for example, those small restaurants/fast food restaurants located in the shopping malls). Explain why and how firms in competitive markets may apply mixed bundling. Provide a numerical example to prove your case.
Firms that have market power can apply the mixed bundling strategy to increase their profits. Some...
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