Question: please answer the question with steps: 5. A monopolist produces two goods. good 1 and 2. consumer in this market have reservation price T1 and

please answer the question with steps:

please answer the question with steps: 5. A monopolist produces two goods.

5. A monopolist produces two goods. good 1 and 2. consumer in this market have reservation price T1 and r2. Each consumer, then, can be represented by a point on the following graph. For example. consumer A would reservation price vi' and TE for the two goods. This is depicted below with some points representing consumers B F. r l'.' 1 [a] Suppose that the monopolist sells the two goods separately [i.e.. follows the separate pricing strate} at price p1 and 332 such that [if r: pl 6. v'f} and {r5 a: 132 *2? TE} . Illustrate these two prices on the reservation price graph{i.e., illustrate all the prices for good 1 that equal p1 and all the reservation prices for good 2 that equal pay]. Illustrate which consumers buy which goods at these two prices. [b] Suppose that the monopolist sells the goods only as a bundle {or follows the pure bundling strate} at price p3. Illustrate this price on the reservation price graph. [i.e., Illustrate all reservation prices for which n +13; 2 PE}. Illustrate which consumers buy which goods at this price. [c] Suppose the monopolist sells the goods under a mixed pricing strategy, so that products are available separately at prices p1 and p: as well as in a bundle. Illustrate the three prices on a reservation price graph. Illustrate which consumers buy which goods at these price. [d] Using your graphs, illustrate why mixed bundling may be a desirable policy

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