question is below

1. A software company sells two applications, noted A and B, that are totally unrelated to one another. The marginal cost of production for each application is constant and is equal to 10. The company faces four categories of potential buyers, which are characterized by a pair of reservation prices as depicted in the following table; it is assumed that each category counts the same mass of consumers, which is set to 1. Application A Application B Category 1 Category 2 Category 3 Category 4 a. What price should the company set for each application if it decides to sell them separately? What prots will the company achieve in this case and which, categories of consumers will buy which application? Show all your computations b. Suppose now that the company pursues a mixed bundling strategy. Which price should it set for the bundle and for the separate applications? What prots will the company achieve in this case and which, categories of consumers will choose which option? Is mixed bundling more protable than separate selling? Discuss. Show all your computations c. How would your answers to (1) and (2) change if the marginal cost of production increased from 10 to 40? Redo all the computations in part 'a' and 'b' above