You also sell into the market for flints, which is perfectly competitive The marginal cost of flints is also $1 Some Flint consumers also value chert, but some do not The demand curve for flint by customers who buy both chert and flint is QF,CH 50 PF The demand curve for flint by customers who buy only flint is QF 50 PF Now suppose that you consider a tying arrangement, in which you only sell cherts to consumers there, too Is it possible to increase profits over what you got under independent pricing Prove your answer numerically

Question: You also sell into the market for flints, which is perfectly competitive.The marginal cost of flints is also $1. Some Flint consumers also value chert,

You also sell into the market for flints, which is perfectly competitive.The marginal cost of flints is also $1. Some Flint consumers also value chert, but some do not. The demand curve for flint by customers who buy both chert and flint is QF,CH= 50 - PF. The demand curve for flint by customers who buy only flint is QF= 50 - PF. Now suppose that you consider a tying arrangement, in which you only sell cherts to consumers there, too. Is it possible to increase profits over what you got under independent pricing? Prove your answer numerically.

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