Question: answer below A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have

answer below

answer below A computer hardware firm sells both laptop computers and printers.

A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below. Laptop Printer Bundle Customer A $750 $100 $850 Customer B $950 $50 $1,000 Customer C $650 $150 $800 Assume for simplicity that the firm has one customer of each type and that marginal cost is zero. If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? To maximize profit using individual prices, the firm should charge a price for laptops of P =0 and a price for printers of P= After conducting a costly study, an outside consultant claims that the company could make more money from its customers if it sold laptops and printers together as a bundle instead of separately. Is the consultant right? The profit-maximizing pure bundle price is $ . (Enter your response as a whole number.) Does bundling pay (increase profit) or not pay (not increase profit)? Bundling for this firm

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