Netflix decides to start selling two subscriptions, an action and a drama subscription. They have four customers,
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Question:
Netflix decides to start selling two subscriptions, an action and a drama subscription. They have four customers, each of whose valuation is indicated in the table below:
Assume the marginal cost of offering either subscription is zero.
- What are the optimal prices of each of the action and drama subscriptions if there is no bundling?
- If the action and drama subscriptions are sold only as a bundle, what is the optimal price of the bundle?
- If the action and drama subscriptions can optionally be purchased in a bundle, what are the optimal prices of each of the action subscription, drama subscription and bundle?
Related Book For
Shigleys Mechanical Engineering Design
ISBN: 978-1121345317
9th edition
Authors: Richard G. Budynas, J. Keith Nisbett
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