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Educational channel and a music video channel

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Soma cable has a educational channel and a music video channel. The viewing audience consists of two segments (A and B). Below shows the segment sizes, their RP's for each channel:

A's RP: Educational: $20 Music Video: $2 Segment Size: 4,000
B's RP: Educational: $11 Music Video: $11 Segment Size: 6,000

SOMA incurs a cost of $5 per channel for each customer.

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1) If it sold each channel separately, what price should it set on each to maximize profits?

2) If it sold the two channels as a bundle, what price should it set on the bundle to maximize profit?

3) Could Soma generate more profit through mixed bundling? If so, which ones and at what price?

Reference no: EM13893796

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