(Table: Customer Valuations for Lawn Services I) The table shows customer valuations for different lawn services. 
The marginal cost of lawn cutting is $400, and the marginal cost of fertilizing is $200.
a. Suppose the lawn service prices its services separately. How much should the company charge for lawn cutting and how much for fertilizing? How much producer surplus does the company earn by pricing its services separately?
b. Now suppose the company offers lawn cutting and fertilizing as a bundle. What is the bundle price? How much producer surplus is earned with bundling?
Definitions:
Hobbes
Refers to Thomas Hobbes, a 17th-century English philosopher known for his political theories, notably the concept of social contract.
Social Theorists
Scholars who develop ideas and theories to explain social phenomena, relationships, and structures within societies.
Products Of
Entities or outcomes that result from a specific process, action, or series of events.
Locke
A 17th-century English philosopher, John Locke, known for his contributions to liberalism, political theory, and his theories on mind and consciousness.
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