Q$6$: $(18$ points$)$

Assume there is one customer in each group. Each number in the above table represents the maximum price that a customer is willing to pay for a certain product. Suppose your goal is to maximize total revenue. Assume that both products have negligible unit variable cost. So$,$ the pricing that maximizes total reverue also maximizes total contribution. Also, assume away gatiation.

If the two products are priced separately:

What is the optimal price for each of the two products? $(2$ point$)$

What is the total revenue from two products combined if they are priced separately at their respective optimal prices? $(2$ pt$.)$

If you uce pure bwalling $($ie$.,$ charge the same bunale price to all customers$)$:

What is the optimal pure bundle price? $(2$ pt$)$

What is the total revenue at the optimal pure bundle price? $(2$ pt$.)|$

If you use mixed buading:

What is the bundle price you recommend? $(2$ pt$.)$

What is your recommended price for Product $1$ when bought alone? $(1$ pt $.)$

What is your recommended price for Product $2$ when bought alone? $(1$ pt $.)$

What is the total revenue? $(1$ pt $.)$

Now, suppose the reservation prices change to:

Toward total revenue maximization, which do you recommend? Check one option$(2$ pts$).$

$()$Separate pricing

$()$Pure bundling

$()$Mixed bundling

Taken together, what is the takeaway message that can be applied to other pricing gituations? Particularly, under what circumstances should you consider pure bumdling? $(3$ points$)$