A computer manufacturer sells computers and monitors separately. This manufacturer also allows consumers to choose any type of computer and any type of monitor and sells the two components as a package. This manufacturer is engaging in a ____________ pricing strategy.
A)tying
B)third-degree
C)mixed bundling
D)first-degree

Question

Quizplus · Accepted Answer

The computer manufacturer is engaging in mixed bundling because they offer both the option to purchase computers and monitors separately or as a package deal, allowing the consumer to choose which option they prefer. Tying pricing strategy would only allow the consumer to purchase the computer and monitor together as a package deal, while third-degree and first-degree pricing strategies do not involve bundled offerings. The manufacturer is engaging in mixed bundling by allowing consumers to choose any type of computer and any type of monitor and selling them as a package. Tying involves selling one product only on the condition that the consumer also buys another product. Third-degree pricing involves charging different prices to different consumer groups. First-degree pricing involves charging different prices to different individuals based on their willingness to pay.

A Computer Manufacturer Sells Computers and Monitors Separately