|Question||A consumer’s reservation price for a bundle consisting of sporty wheels and a luxury interior is the sum of the individual component reservation prices. GeeM does not price discriminate.
GeeM has solicited your in pricing the wheel and interior package. You know that they could sell the packages separately, as a pure bundle, or as a mixed bundle.
Of those three pricing strategies, which one would maximize GeeM’s profit? What are the prices (what is the price) that you suggest? How much better is the best pricing strategy than the second best pricing strategy?