This table presents George, John, and Rebecca's maximum willingness to pay for certain streaming services. Suppose the
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This table presents George, John, and Rebecca's maximum willingness to pay for certain streaming services. Suppose the marginal cost of producing each streaming service is \$0. What price will be charged for each streaming service, if priced individually? If they were to bundle the streaming services, what price would they charge for the bundle? Would it be better to price individually or bundle?
George | John | Rebecca | |
Hulu | $50 | $20 | $10 |
Disney+ | $4 | $5 | $10 |
Showtime | $15 | $10 | $20 |
If priced individually, Hulu should be sold for
.
If priced individually, Disney+ should be sold for
.
If priced individually, Showtime should be sold for
.
If bundled, the bundle should be sold for
.
The firms are better off
.
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