Mixed Bundling Is Sometimes the Most Profitable Strategy for a Firm

question 49

Multiple Choice

Mixed bundling is sometimes the most profitable strategy for a firm:

• A)because the firm can more accurately assess the reservation price of each consumer.
• B)because consumers prefer to spend in binges and make multiple purchases at the same time.
• C)when the firm has high delivery or shipping costs.
• D)because this strategy discourages a customer from buying a component when his/her willingness to pay is less than the marginal cost of a component of the purchase.

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Definitions:

Negative Sanctions

Punishments or penalties imposed on individuals or groups to discourage noncompliance with norms, laws, or regulations.

Biological Sex

The classification of human beings, typically as male or female, based on physiological and genetic characteristics.

Gender Role

The set of behaviors associated with widely shared expectations about how males or females are supposed to act.

Gender Identity

One’s identification with, or sense of belonging to, a particular sex—biologically, psychologically, and socially.