Use the following table of Consumer willingness to pay to answer questions 13-16. Assume the cost of producing the goods is zero.
Consumer A Consumer B
Good 1 $4500 $5,000
Good 2 $1,500 $1,000
Suppose the monopolist only sold the good separately. What price will the monopolist charge for Good 1 to maximize revenue for Good 1?
Suppose the monopolist only sold the good separately. What price will the monopolist charge for Good 2 to maximize revenues for Good 2?
What is the total profit to the monopolist from selling the goods separately?
What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?