Use the following table to answer the following questions
$$\begin{array} { | c | c | c | }
\hline \text { Customer } & \begin{array} { c }
\text { Product A } \
\text { Reservation Price }
\end{array} & \begin{array} { c }
\text { Product B } \
\text { Reservation Price }
\end{array} \
\hline 1 & 1,000 & 200 \
\hline 2 & 800 & 400 \
\hline \text { Marginal Cost } & 500 & 100 \
\hline
\end{array}$$
-If the firm bundles the products, what single price should the firm charge for the bundle to maximize profit?
A) 600
B) 800
C) 1,000
D) 1,200

Question

Use the following table to answer the following questions 
$$\begin{array} { | c | c | c | } 
\hline \text { Customer } & \begin{array} { c } 
\text { Product A } \
\text { Reservation Price }
\end{array} & \begin{array} { c } 
\text { Product B } \
\text { Reservation Price }
\end{array} \
\hline 1 & 1,000 & 200 \
\hline 2 & 800 & 400 \
\hline \text { Marginal Cost } & 500 & 100 \
\hline
\end{array}$$
-If the firm bundles the products, what single price should the firm charge for the bundle to maximize profit?
A) 600
B) 800
C) 1,000
D) 1,200

Quizplus · Accepted Answer

The firm should charge $1,200 for the bundle because this is the sum of the reservation prices for Customer 1 ($1,000 for Product A and $200 for Product B), ensuring both customers are willing to buy the bundle.

Use the Following Table to Answer the Following Questions -If the Firm Bundles the Products, What Single Price Should