(Table: Maximum Willingness to Pay for Word and Excel) Refer to the table. If Microsoft bundles Word and Excel andsells them as Office, what is the maximum profit Microsoft canmake from selling Office?
(Assume the marginal costs ofproduction are zero.)
A) $160
B) $300
C) $320
D) $210
Correct Answer:
Verified
Q97: Q100: Q130: In order to price discriminate, firms must Q161: Bundling increases _ and hence increases the Q167: A firm that spends extra money to Q172: Which of the following does NOT represent Q188: Which of the following is TRUE? Q189: The difference between tying and bundling is Q223: Perfect price discrimination results in zero dollars Q231: Perfect price discrimination causes the demand curve![]()
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A) Bundling
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