Question: Please answer a and b 3. Consider a cable company that offers both cable TV and highspeed internet services. It has two types of consumers

Please answer a and b

Please answer a and b 3. Consider a cable company that offers

3. Consider a cable company that offers both cable TV and highspeed internet services. It has two types of consumers who differ in their willingness to pay for a monthly fee for either service: Boomers Millennials Cable $60 $a Internet $32 $48 where a 6 [0,60]. (a) Show that while pure bundling may sometimes be (strictly) better than no bundling for the rm (in terms of prots), it is not always superior to no bundling. That is, for what values of a would no bundling be (strictly) more protable than pure bundling. (b) We also know that mined bundling may yield (strictly) higher prots than pure bundling. So, it may be the case that mixed bundling is better than no bundling for the range of a you found in (3a). Show that, in fact, there is a mixed bundling that gives the rm strictly higher prots than no bundling for the range of a you found in (3a)

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