Use the following table to answer questions 23 - 26
Assume the cost of producing the goods is zero

-What is a better pricing strategy for the monopolist? At this price,what are the total profits to the monopolist?

Question

Use the following table to answer questions 23 - 26
Assume the cost of producing the goods is zero
 
-What is a better pricing strategy for the monopolist? At this price,what are the total profits to the monopolist?

Quizplus · Accepted Answer

Bundle pricing strategy is the best as it results in the highest profit of $8,000 for the monopolist. Charging the lowest price for each good individually results in a profit of $7,000, but bundle pricing generates higher profits. The other pricing strategies (A and C) result in lower profits compared to bundle pricing.

Use the Following Table to Answer Questions 23 - 26