A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team

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A Computer Hardware Firm Sells Both Laptop Computers And Printers Through The Magic Of Focus Groups Their Pricing Team 1 (45.13 KiB) Viewed 9 times

A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below. Customer A Customer B Customer C and a price for printers of Laptop $850 $1,000 $650 Assume for simplicity the marginal cost of production for laptops and printers is zero. If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for simplicity that the firm has only one customers of each type, how much does it earn in total? To maximize profit using individual prices, the firm should charge a price for laptops of In turn, profit is = $. (Enter your response as a whole number.) Why does bundling pay or not pay? Bundling p= Printer $100 $50 $150 p= Bundle $950 $1,050 $800 (Enter your responses as whole numbers.) In turn, profit is = $ (Enter your response as a whole number.) After conducting a costly study, an outside consultant claims that the company could make more money from its customers if it sold laptops and printers together as a bundle instead of separately. Is the consultant right? Assume again that the firm has one customer of each type and that marginal cost is zero. How much does the firm earn in total from pure bundling? The profit-maximizing pure bundle price is $. (Enter your response as a whole number.) because customer reservation values for laptops and printers in this example are correlated.