Bundling can increase the seller's profits when customers have different _______ for the two products and when the firm __________________.
A)supply curves; captures surplus.
B)supply curves; cannot price discriminate.
C)tastes; cannot price discriminate.
D)tastes; can price discriminate.

Question

Quizplus · Accepted Answer

Bundling can increase the seller's profits when customers have different tastes for the two products and when the firm cannot price discriminate, as it allows the firm to sell products together at a single price, capturing more consumer surplus from different segments of the market.

Bundling Can Increase the Seller's Profits When Customers Have Different