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The Following Table Gives the Valuations of Fruit Juices and Health

question 43

Multiple Choice

The following table gives the valuations of fruit juices and health drinks by two groups of consumers in the city of Vanilla.A single producer of both products controls the entire market for beverages in this city and is considering strategies to bundle one bottle of health drink with one bottle of fruit juice.Assume that the marginal cost of supplying both varieties is $2 each.

$\begin{array} { c | c | c | } \hline \text { Products } & \text { Group 1 } & \text { Group 2 } \\\hline \text { Health drink } & \$ 15 & \$ 6 \\\hline \text { Fruit Juices } & \$ 8 & \$ 20 \\\hline\end{array}$
-Refer to Table .If the monopolist bundles the two goods, such that they are no longer available individually, what is the maximum price he can charge for the bundle and what will be his profit?

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Definitions:

Specific Behaviors

Actions or reactions of an organism or individual, usually in response to the environment, that are distinct and particular.

Necessary Goal

A goal considered essential for a person or entity to achieve specific desired outcomes or fulfill a purpose.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.

Cattell

Raymond Cattell was a psychologist known for his work on personality theory and psychometrics, including the development of several personality tests.