Professionals and ordinary consumers

Assignment Help Business Economics

Reference no: EM131092417

CompuTrip Inc. offers two softwares, Street Finder and Trip Planner, which are produced at zero marginal cost (and zero fixed costs). The market research department has estimated that there are two groups of customers of equal size that buy the two products: professionals and ordinary consumers. Professionals have a reservation price of $30 for Street Finder and $10 for Trip Planner. Ordinary consumers have a reservation price of $20 for Street Finder and $15 for Trip Planner. Based on this information,

Pure bundling yields more profits than selling the two goods separately.

Pure bundling yields less profits than selling the two goods separately.

Pure bundling yields the same amount of profits as selling the two goods separately.

It is not profitable for the firm to sell these products.

Reference no: EM131092417

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