Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 6, Problem 3SPPA
To determine

The reason for all restaurants do not use market price to allocate their tables.

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Imagine you are bundling popcorn, soda and candy for AMC Theaters. You have the following data on your customers. Assume 1 of each customer type. For simplicity, assume the price of each good is zero (so really maximizing revenue). Customer Type 1 Customer Type 2 Customer Type 3 Popcorn $6 $5 $7 Candy $7 $6 $5 Soda $5 $7 $6 (a) If you had to sell each product separately, what would you price them at to maximize profits? (b) If you had an option to bundle the 3 products together (a pure bundle option instead of selling separately), what would you price the bundle at? (c) How much would this increase or decrease profits by?
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