The reservation prices,in dollars,for three classes of demanders (A,B,and C)for three restaurants (1,2,and 3)are given in the following table.What is the maximum revenue that can be generated by setting a bundled price for the three restaurants?
A) $59.
B) $75.
C) $81.
D) $89.
E) None of the above.

Question

The reservation prices,in dollars,for three classes of demanders (A,B,and C)for three restaurants (1,2,and 3)are given in the following table.What is the maximum revenue that can be generated by setting a bundled price for the three restaurants? 
A) $59. 
B) $75. 
C) $81. 
D) $89. 
E) None of the above.

Quizplus · Accepted Answer

To find the maximum revenue generated by setting a bundled price for the three restaurants, we need to add the highest reservation prices of each demand group for the three restaurants.

For demand group A: The highest reservation price is $26 (for restaurant 3)
For demand group B: The highest reservation price is $22 (for restaurant 2)
For demand group C: The highest reservation price is $27 (for restaurant 1)

Therefore, the total revenue generated by setting a bundled price would be $26 + $22 + $27 = $75 (Option B).

The Reservation Prices,in Dollars,for Three Classes of Demanders (A,B,and C)for