Bundling refers to selling multiple separate goods together for a single price, often offering consumers a discount for purchasing the bundle instead of each item separately. It can provide benefits for both the seller and buyer, such as convenience, cost savings, and reduced transaction costs. It is not illegal and is widely used in many industries.

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Bundling

Question 108

Multiple Choice

Bundling

A) is when firms sell multiple separate goods together for a single price.
B) is where a firm wraps its fragile goods in special packaging and charges a higher price than if the goods are put into regular packaging.
C) increases transaction costs for consumers.
D) is illegal in most U.S. states.

Correct Answer: