Assume a Car-Detailing Company Can Offer Customers "#1 Mom" Decals

question 14

Multiple Choice

Assume a car-detailing company can offer customers "#1 Mom" decals and flame decals at a zero marginal and average cost. The following table shows each customer's marginal willingness to pay for each individual decal, and for a bundle containing both. Which strategy yields the maximum profit, and what maximum profit is obtained?

• A)Sell separately and make a profit of $130.
• B)Sell separately and make a profit of $180.
• C)Bundle and make a profit of $150.
• D)Bundle and make a profit of $215.

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