Consider a local fast-food restaurant. The following table suggests the maximum price two onsumers are willing...

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Consider a local fast-food restaurant. The following table suggests the maximum price two onsumers are willing to pay for two products: chicken nuggets and fries. Maximum Price Fries A B Chicken Nuggets $1.50 $2.55 $1.50 $0.45 Assume the marginal cost of chicken nuggets is $1.00 and the marginal cost of fries is $0.50. a) Are A and B's demands negatively or positively correlated? b) What is the single item pricing policy that maximizes profits? c) What is the profit if the restaurant bundles the goods together for $3? d) Assume the restaurant engages in mixed bundling. What would be the profit if the Consider a local fast-food restaurant. The following table suggests the maximum price two onsumers are willing to pay for two products: chicken nuggets and fries. Maximum Price Fries A B Chicken Nuggets $1.50 $2.55 $1.50 $0.45 Assume the marginal cost of chicken nuggets is $1.00 and the marginal cost of fries is $0.50. a) Are A and B's demands negatively or positively correlated? b) What is the single item pricing policy that maximizes profits? c) What is the profit if the restaurant bundles the goods together for $3? d) Assume the restaurant engages in mixed bundling. What would be the profit if the

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