Use the Following Table to Answer the Following Questions -If the Firm Bundles the Products, What Single Price Should

question 2

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 bundles the products, what single price should the firm charge for the bundle to maximize profit?

• A) 600
• B) 800
• C) 1,000
• D) 1,200

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Definitions:

Dollar Price

The dollar price indicates the amount of U.S. currency required to purchase a good, service, or asset.

Japanese Yen

The official currency of Japan, symbolized as ¥ and known in international finance as JPY.

Goods and Services Deficit

A situation where the value of a country's imports of goods and services exceeds the value of its exports.

Germany

A country in Central Europe known for its rich history, cultural heritage, and significant economic contributions.