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Customer2 is willing to pay $7 for Product A and $4 for Product B. Can the firm increase revenue by bundling and, if so, how much should be charged for the bundle?
a. The firm cannot increase profits by bundling.
b. The firm can increase profits by bundling. The bundle should sell for $12.
c. The firm can increase profits by bundling. The bundle should sell for $10.
d. The firm can increase profits by bundling. The bundle should sell for $7.
I think option A is the correct answer
The company should sell Product A to customer 2 and product B to customer1 making $10 in revenue from selling the two products.
So Answer (C) is correct.
I thank (a)...............................
a. The firm cannot increase profits by bundling. As it makes no sense in the scenario given in the problem. Thanks for the invitation sir.
The firm cannot increase profits by bundling. ....................................
Higher selling price is always welcome. But seller should minimum expect a price as per option C. And under no circumstance should sell less than USD10.
The firm cannot increase profits by bundling as customer 2 is paying higher than customer1 for both items. It is better to sell both items to customer2
The Firm can increase profits by bundling .Yes the bundle should sell for $12 .because its totally depends on market and consumer demand .
I agree with the majority
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