Assume a cable TV supplier. The following table shows the maximum price Alfa, Beta and Omega will pay for two separate TV-types (sports, films) and the bundled (sports + films) price: Assume the MC of sports is €10 and the marginal cost of films is €5. Maximum price Sports Films Bundled price Alfa €15 €20 €30 Beta €18 €20 €25 Omega €25 €10 €30 (i) Assume the TV supplier engages in mixed bundling and charges €29.5 for the bundle, €24 for sports and €19 for films. What is the best pricing strategy for the TV-supplier, simple bundle, separate prices only, or mixed bundling? Show your calculations! (ii) Can you find better prices for the TV supplier?

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