Ruth’s Rubies is a single-price monopolist in the market for rubies. Calculate Ruth’s Rubies total revenue and marginal revenue (fill in the table)                                                       Suppose Ruth’s Rubies currently charges $200 for its rubies (sells 3 rubies). If it lowers the price to $100 (to sell 4 rubies), how large is:                the quantity effect?  the price effect? Compare the combined outcome of the price effect and quantity effect to the value you calculated for MR when the price decreases from $200 to $100                                                                                                                                                                                      Price of a Ruby Quantity of Rubies           Demanded Total Revenue Marginal Revenue    $500      0          400      1          300      2          200      3          100      4              0      5

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Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.