I need help with this question...

Bundling Consider a telecommunication rm that offers both phone service and a high-speed internet service. It has two types of consumers who differ in their willingness to pay a monthly rental fee for either service: Callers Gamers Call service $40 $11: Internet service $10 $30 Both services $50 $30 + a: where a: > 0. There are N of consumers, where N is even. Half of these consumers are callers, and the other half are gamers. The rm is not able to price discriminate. Costs are normalized to zero . 1. Compute the rm's prot under separate pricing (= unbundling) as a function of (1:. 2. Compute the rm's prot under pure bundling as a function of ac. Pure bundling means that the rm is only selling the two services as a package 3. For what values of a: is pure bundling more protable than separate pricing? Is bundling here welfare improving? Explain