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A firm offers two products for sale. The marginal cost of one product is new zero once the first unit

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A firm offers two products for sale. The marginal cost of one product is new zero once the first unit has been produced. The marginal cost of the other product rises as output rises. What would be the effect of bundling the two products? What price would the firm charge for the bundle?

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Managerial Economics Markets and the Firm

Managerial Economics Markets and the Firm

ISBN: 978-0618988624

2nd edition

Authors: William Boyes

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Question Posted: September 27, 2014 06:16:15
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