Mixed bundling is more profitable than pure bundling when
A) the marginal cost of each good being sold is positive.
B) the consumers' reservation values of each good being sold are not perfectly negatively correlated with one or another.
C) Both A and B are correct.
D) the marginal cost of one good is zero.
C
You might also like to view...
Production inefficiency is more likely to occur when the principal has more information about work performance than the agent does
Indicate whether the statement is true or false
Which of the following is a result of scarcity?
a. Costs are incurred in making choices. b. We attempt to utilize our resources as efficiently as possible. c. We must make choices between production possibilities. d. We are unable to produce all we would like to produce. e. All of these.
Suppose that an MBA degree creates no externality because the benefits of an MBA are internalized by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?
a. The equilibrium quantity of MBAs will equal the socially optimal quantity of MBAs. b. The equilibrium quantity of MBAs will be greater than the socially optimal quantity of MBAs. c. The equilibrium quantity of MBAs will be less than the socially optimal quantity of MBAs. d. There is not enough information to answer the question.
Inflation increases:
A. the prices of goods and services only. B. all prices, including wages. C. only consumer prices, not producer prices. D. wages first, followed by product prices.