Bundling is more profitable than traditional pricing

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Reference no: EM13984093

When a firm tries to maximize profit by segmenting the market into two groups and charging each group a different price, which group should be facing a lower price?

a. The one that is larger in size.

b. The one that is smaller in size.

c. the one with the less elastic demand.

d. The one with the more elastic demand.

Why?

Bundling is more profitable than traditional pricing ...

a. always.

b. when demands of different consumers are identical.

c. when demands of different consumers are similar.

d. when demands of different consumers are very different.

Why?

Reference no: EM13984093

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