An attractive bundle:-
A firm sells two products, each of which has zero marginal cost. There are four customers (or four customer types in equal amounts) with willingness-to-pay combinations (40, 70), (70, 30), (10, 100), and (20, 40).
(a) What price p1 should the firm set for the first product to obtain maximum profit for that product?
(b) What price p2 should the firm set for the second product?
(c) Suppose that the firm sells the two products together as a bundle with a fixed price. What price pB should the firm set for the bundle?
(d) Compare the total profits for the bundled and unbundled cases.