In: Economics
Question: You are selling two goods, 1 and 2, to a market consisting of three consumers with reservation pr...
You are selling two goods, 1 and 2, to a market consisting of three
consumers with reservation prices as follows:
Consumer For 1 For 2
A 20 4
B 12 12
C 4 20
The unit cost of each product is $6.
Compute the optimal prices and profits for
(i) selling the goods separately,
(ii) pure bundling, and
(iii) mixed bundling.
Price 1 Price 2 Bundled Price Profit
Sell Separately $20 $20 — $28
Pure Bundling — — $24 $36
Mixed Bundling $19 $19 $24 $38 ???????Why MIxed bunding is 19? ?????? how do you get 19???????