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Problem:
Students are willing to pay $700 for a computer and $100 for additional software. Workers are willing to pay $500 for a computer and $200 on the additional software. If the unit cost for computers is $200 and the unit cost for the additional software is $50
a) If there is no bundling what is the price for ...
i) A computer
ii) Additional software
b) If the computer and additional software are only sold together under a pure bundling strategy what is the price of the bundle?
Summary
This question basically from Finance and it is about a scenario where students are willing to pay more for computer as well as less for software than workers who want to pay less for computer and more for software. The differences in these two instances have been taken and price, if there was no bundling has been computed.
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