Question: Reconsider Problem 16, but assume instead that the marginal cost of each program is $25. Will bundling or independent be more profitable? Now consider the

Reconsider Problem 16, but assume instead that the marginal cost of each program is $25. Will bundling or independent be more profitable? Now consider the possibility of offering a bundle and selling the two programs separately? Can you find prices for the bundle and the two individual products that will yield a greater profit than selling either the bundle alone or the individual products alone?

Willingness to Pay Word Processon Number 1,000 1,000 1,000 1,000 1,000 Spreadsheet 200 75 50 25 Both 200 100 100 100 200 Consumer lype 25 50 75 200

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