you are selling two goods, 1 and 2 to a market consisting of three consumers with reservation prices as follows.
Consumer Reservation price for 1 Reservation price for 2
A 30 80
B 60 50
C 90 20
The unit of cost of the product is $40.
A. Compute the optimal prices and profits for (i) selling the goods separately, (ii) selling as a pure bundle, and (iii) and selling separately as well as a bundle (that is using the mixed strategy of mixed bundling), Which strategy yields the highest profits?
B. Which strategy would be the most profitable if the unit cost of production is $5?
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