You are selling two goods, 1 and 2, to a market consisting of three consumers with reservation
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The unit cost of each product is $30.
a. Compute the optimal prices and profits for (i) selling the goods separately, (ii) pure bundling, and (iii) mixed bundling.
b. Which strategy would be most profitable? Why?
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a The optimal prices and resulting profits for each strategy are Price 1 Price 2 Bundled Price Profi...View the full answer
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