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.