1. A monopolist produces both Good A and Good B. There are two types of consumers. Enthusiasts are willing to pay 10 for Good A and 7 for Good B. Marginals are willing to pay 1 for Good A and 6 for Good B. There are 10 of each type of consumer. The monopolist has a choice between bunding the two goods together or pricing them individually. 
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3. a. The Willingness to pay is NOT negatively correlated, and the firm should price items individually. 
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5. b. The Willingness to pay is NOT negatively correlated, and the firm should bundle. 
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7. c. The Willingness to pay is negatively correlated, and the firm should price items individually. 
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9. d. The Willingness to pay is negatively correlated, and the firm should bundle.

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