What is the maximum price that you could charge for a bundle

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Reference no: EM13882700

Please use the following price schedule for the first two Questions in this section. Imagine that you are trying to sell the showing rights of two movies to two television channels who have the following willingness to pay for each movie.


Movie 1 Movie 2
Customer A  8,000 2,500
Customer B  7,000 3,000
Customer C 6,000 6,000

1. If you sold the movies separately, what price would you charge for Movie 1 and Movie 2, respectively, in order to maximize profits?

2. What is the maximum price that you could charge for a bundle of BOTH movies in order to maximize profits?

Reference no: EM13882700

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