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Question: You are selling two goods, 1 and 2, to a market consisting of three consumers...

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???????

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