You are setting the pricing structure for Comcast with respect to two of its most popular

Cable TV channels (assume there is only two channels available). Below are the

valuations that three consumers have for CNN and ESPN (e.g., how much they are

willing to pay for each channel).

Consumer A: CNN ($9), ESPN ($2)

Consumer B: CNN ($2), ESPN ($9)

Consumer C: CNN($8), ESPN ($8)

a) Please devise a pricing strategy that will allow Comcast, a cable provider, to generate the

greatest amount of revenue. Note: Due to regulations, Comcast needs to provide all of its

pricing options to all consumers. (8 points)

b) What is the maximum total revenue generated by Comcast from these three customers

based on your pricing strategy? (2 points)