company sells two goods (1 and 2) to two consumers (A and B). The consumers have reservation prices for the two goods given in the table below. Each consumer will purchase one unit of a good as long as its price is less than or equal to the consumer's reservation price for that good. The marginal cost of producing each good is $35 per unit. Good 1 Good 2 Consumer A Consumer B $80 $60 $40 $70 If the company plans to sell the goods separately, it should charge a price of $ 60 for good 1 and 570 for good 2. (Enter your responses as integers) If the company wants to use pure bundling by packaging the goods together and selling them only as a bundle, it should charge $ 120 for the bundle containing one unit of good 1 and one unit of good 2. (Enter your response as an integer) If the company wants to practice mixed bunding, it should charge a price of $80) for good 1, a price above $40 for good 2, and a price of $ 100 for the bundle containing one unit of each good (Enter your responses as integers)

company sells two goods (1 and 2) to two consumers (A and B). The consumers have reservation prices for the two goods given in the table below. Each consumer will purchase one unit of a good as long as its price is less than or equal to the consumer's reservation price for that good. The marginal cost of producing each good is $35 per unit. Good 1 Good 2 Consumer A Consumer B $80 $60 $40 $70 If the company plans to sell the goods separately, it should charge a price of $ 60 for good 1 and 570 for good 2. (Enter your responses as integers) If the company wants to use pure bundling by packaging the goods together and selling them only as a bundle, it should charge $ 120 for the bundle containing one unit of good 1 and one unit of good 2. (Enter your response as an integer) If the company wants to practice mixed bunding, it should charge a price of $80) for good 1, a price above $40 for good 2, and a price of $ 100 for the bundle containing one unit of each good (Enter your responses as integers)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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