Suppose that in Table 18.4 consumer types B, C, and D instead have valuations of $75, $50, and $25, respectively, for a spreadsheet program and $25, $50, and $75, respectively, for a word-processing program. What will be the profit-maximizing bundle price? How will profit from this pricing policy compare to profit under independent pricing of the two goods? (As in the text, assume the marginal cost of production is zero).

Transcribed Image Text:

Willingness to Pay Word Processor Both 200 100 100 100 200 Consumer Type Number 1,000 1,000 1,000 1,000 1,000 Spreadsheet 200 75 50 25 25 50 75 200