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.Which strategy yields the maximum profit,and what maximum profit is obtained?

Question

Quizplus · Accepted Answer

Bundling yields a higher profit of $320 compared to selling separately which yields a profit of $280 for internet and $60 for television. This is because bundling offers a discount to customers and increases the demand for both services.

Assume a Company Can Offer Customers Cable Television and Internet