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Assume a Company Can Offer Customers Cable Television and Internet

Question 108

Multiple Choice

Assume a company can offer customers cable television and Internet service at essentially zero marginal and average cost.The following table shows each customer's marginal willingness to pay for television,Internet services,and for a bundle containing both.If television and Internet services are sold in a pure bundle,the profit-maximizing price is Assume a company can offer customers cable television and Internet service at essentially zero marginal and average cost.The following table shows each customer's marginal willingness to pay for television,Internet services,and for a bundle containing both.If television and Internet services are sold in a pure bundle,the profit-maximizing price is   A)  $140. B)  $160. C)  $180. D)  None of the above since pure bundling is not profit maximizing in this case.


A) $140.
B) $160.
C) $180.
D) None of the above since pure bundling is not profit maximizing in this case.

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