Use the Following Table to Answer the Following Questions -If the Firm Does Not Bundle the Products, What Single

question 48

Multiple Choice

Use the following table to answer the following questions
$$\begin{array} { | c | c | c | } \hline \text { Customer } & \begin{array} { c } \text { Product A } \\\text { Reservation Price }\end{array} & \begin{array} { c } \text { Product B } \\\text { Reservation Price }\end{array} \\\hline 1 & 1,000 & 200 \\\hline 2 & 800 & 400 \\\hline \text { Marginal Cost } & 500 & 100 \\\hline\end{array}$$
-If the firm does not bundle the products, what single price should the firm charge for product A to maximize profit?

• A) 500
• B) 800
• C) 900
• D) 1,000