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:

Magmatic Belt

A geographic zone that is extensively populated by igneous rocks which have been or are being formed by magmatic processes typically related to tectonic plate boundaries.

Passive Margin

The transition zone between oceanic and continental lithosphere that is not an active plate boundary.

Subduction Zone

The region where one tectonic plate moves under another, into the mantle, typically associated with volcanic arcs and oceanic trenches.

Oceanic Trench

Long, narrow, and deep depressions on the ocean floor, usually the result of one tectonic plate subducting under another, often associated with volcanic arcs and earthquake activity.