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Question 4 : Bundling, Mixed Bundling and Entry Deterrence (20 marks) The table below indicates the willingness to pay for good 1 and good 2 by various types of buyers. There are 10 buyers of each type. a) (10 marks). Monopoly. An incumbent firm does not face entry. The incumbent's costs are MC = 2.50 for each good and zero fixed costs. Find prices and profits when the seller offers the products (i) individually. (ii) as a bundle. (iii) as a mixed bundle. b) (10 Marks). Potential Entry. Now suppose the incumbent faces entry in market 2. The entrant's costs are MC = 2.50 and fixed costs equal to 60. Find the incumbent's entry deterring prices and profits if the incumbent sells goods (i) individually and (ii) as a bundle