Bundling Watch

justinsmith
Badges: 5
Rep:
?
#1
Report Thread starter 7 years ago
#1
Ok, so i've got a load of industrial economics questions to do for tommorow and i'm stuck on what is supposedly the easiest one

This is the question:

2. Suppose that a monopolist has a market with 100 consumers, each of which has an inverse
demand function equal to P = 15-5Q. The marginal cost is constant and equal to 5.
a) Find the price and profit in the case of uniform pricing.
b) Can the monopolist increase its profits by applying bundling? If yes, what is the optimal
size of the bundle?

Now, part a is very easy but i just don't get part b, I mean how the **** do you bundle when you don't have 2 products???
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

University open days

  • Cranfield University
    Cranfield Forensic MSc Programme Open Day Postgraduate
    Thu, 25 Apr '19
  • University of the Arts London
    Open day: MA Footwear and MA Fashion Artefact Postgraduate
    Thu, 25 Apr '19
  • Cardiff Metropolitan University
    Undergraduate Open Day - Llandaff Campus Undergraduate
    Sat, 27 Apr '19

Have you registered to vote?

Yes! (285)
37.75%
No - but I will (53)
7.02%
No - I don't want to (55)
7.28%
No - I can't vote (<18, not in UK, etc) (362)
47.95%

Watched Threads

View All