Bundling Always Increases a Multi Product Monopolist's Profit

question 21

Multiple Choice

Bundling always increases a multi product monopolist's profit

• A) Whenever an increase of a dollar in the willingness to pay for one good implies a reduction of a dollar in the willingness to pay for another good and the marginal cost is zero
• B) Whenever an increase of a dollar in the willingness to pay for one good implies an increase in the willingness to pay for another good and the marginal cost is zero
• C) When doing so does not alter consumers' willingness to pay for the bundle and the monopolist can extract all of aggregate surplus as profit
• D) Whenever a decrease of a dollar in the willingness to pay for one good implies an increase in the willingness to pay for another good and the marginal cost is zero

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