Firms bundle their products because:
A) it is technologically efficient to do so.
B) it can increase a firm's ability to extract consumer surplus.
C) it can increase a firm's profits.
D) All of these are reasons firms bundle their products.

Question

Quizplus · Accepted Answer

Firms bundle their products for multiple reasons. It can be technologically efficient to do so, it can increase a firm's ability to extract consumer surplus, and ultimately increase a firm's profits. Therefore, all of the choices listed are valid reasons why firms bundle their products.

Firms Bundle Their Products Because