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ECO - At a student caf?, there are equal numbers of two types of customers

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Question;At a student caf?, there are equal numbers of two types of customers with the following values. The caf? owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price discriminate).Students with early classes Students without early classesCoffee 70 60banana 50 100The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? If so what price should be charged for the bundle?

 

Paper#57033 | Written in 18-Jul-2015

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