Answer Happy

(a) The reason firm's use non-linear pricing is to increase the firm's sales increase the firm's revenue change the consumer's preferences o reduce the firm's costs (b) Suppose the following consumer's have the reserve prices (Table 1) for two goods, sold by the same firm. The good is produced and sold at O marginal cost. Table 1 Good 1 (Reserve Consumer Price $) 1 7 Good 2 (Reserve Price $) 9 2 6 3 3 9 6 4 5 3 5 8 4 The optimal bundle price for the firm is $