Mixed bundling is more profitable than pure bundling when
A) the marginal cost of each good being sold is positive.
B) the consumers' reservation values of each good being sold are not perfectly negatively correlated with one or another.
C) Both A and B are correct.
D) the marginal cost of one good is zero.

Question

Quizplus · Accepted Answer

Mixed bundling is more profitable than pure bundling when both the marginal cost of each good is positive and consumers' reservation values are not perfectly negatively correlated, as it allows for price discrimination and capturing more consumer surplus.

Mixed Bundling Is More Profitable Than Pure Bundling When