(a) If you can only set (linear) prices for each of the two games, what prices would you select? (b) Can you do better with two part tariffs? (c) Can you do better by selling ONLY the package with the two games? What would then be the price of the package (bundle) that you would set?
(a) If you can only set (linear) prices for each of the two games, what prices would you select? (b) Can you do better with two part tariffs? (c) Can you do better by selling ONLY the package with the two games? What would then be the price of the package (bundle) that you would set?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...
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You are a monopolist with 15 potential buyers for the two video games you sell, VG1 and VG2. You can produce each of these games at constant marginal cost of $1. There are 3 different types of clients: type A (3 of them), type B (5 of them) and type C (7 of them).
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