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Suppose a Monopoly Produces Film and Cameras

Question 82

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Suppose a monopoly produces film and cameras.Consumers demand pictures,which require film and one camera.Two different types of consumers have the following demand for film,qA = 100 - 10p and ?qB = 80 - 10p.The monopoly cannot price discriminate in the market for film or the market for cameras,but it can bundle the products.The monopoly produces film at a constant marginal cost of $1 per roll.What price will the monopoly set for film and for cameras?

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Profit equals [(8 - p)∗ (80 - 10p)] + (p...

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