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Question 4 You are selling two goods, 1 and 2, in a market consisting of three consumers with the following reservation prices: Reservation Price (Rands) Consumer Good 1 Good 2 Abby 40 120 Bella 80 80 Carla 120 40 The unit cost of each product is R50. 4.1 Compute the optimal prices and profits for each of the following scenarios: (a) the goods are sold separately (b) pure bundling (c) mixed bundling. 4.2 Which strategy would be most profitable? Explain why.

Question 4 You are selling two goods, 1 and 2, in a market consisting of three consumers with the following reservation prices: Reservation Price (Rands) Consumer Good 1 Good 2 Abby 40 120 Bella 80 80 Carla 120 40 The unit cost of each product is R50. 4.1 Compute the optimal prices and profits for each of the following scenarios: (a) the goods are sold separately (b) pure bundling (c) mixed bundling. 4.2 Which strategy would be most profitable? Explain why.

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Question 4 You are selling two goods, 1 and 2, in a market consisting of three consumers with the following reservation prices: Reservation Price (Rands) Consumer Good 1 Good 2 Abby 40 120 Bella 80 80 Carla 120 40 The unit cost of each product is R50. 4.1 Compute the optimal prices and profits for each of the following scenarios: (a) the goods are sold separately (b) pure bundling (c) mixed bundling. 4.2 Which strategy would be most profitable? Explain why.
Transcribed Image Text:Question 4 You are selling two goods, 1 and 2, in a market consisting of three consumers with the following reservation prices: Reservation Price (Rands) Consumer Good 1 Good 2 Abby 40 120 Bella 80 80 Carla 120 40 The unit cost of each product is R50. 4.1 Compute the optimal prices and profits for each of the following scenarios: (a) the goods are sold separately (b) pure bundling (c) mixed bundling. 4.2 Which strategy would be most profitable? Explain why.
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