b) After conducting a costly study, an outside consultant suggests that the company could make
more money from its customers if it sold laptops and printers together a s a bundle instead of
separately. Is the consultant right?
c) If the firm has only one customer of each type, how much does the firm each in total from pure
bundling?
more money from its customers if it sold laptops and printers together a s a bundle instead of
separately. Is the consultant right?
c) If the firm has only one customer of each type, how much does the firm each in total from pure
bundling?
Transcribed Image Text:1. A computer hardware firm sells both laptop computers and printers. It has a large inventory of laptops
and printers that it wants to sell, so it has no variable production cost. Through the magic of focus
groups, their pricing team determines that they have an equal number of three types of customers, and
these customers’ reservation prices are shown in the table below:
Laptop
Bundle
Customer Type A
800
900
Customer Type B
1000
1050
Customer Type C
600
750
a) If the firm were to charge only individual prices, what prices should it set for its laptops and
printers to maximize profit? If the firm has only one customer of each type, how much does it
earn in total?
Printer
100
50
150
and printers that it wants to sell, so it has no variable production cost. Through the magic of focus
groups, their pricing team determines that they have an equal number of three types of customers, and
these customers’ reservation prices are shown in the table below:
Laptop
Bundle
Customer Type A
800
900
Customer Type B
1000
1050
Customer Type C
600
750
a) If the firm were to charge only individual prices, what prices should it set for its laptops and
printers to maximize profit? If the firm has only one customer of each type, how much does it
earn in total?
Printer
100
50
150
