Order the answer to: The reservation prices (in dollars) of three classes of demanders

Best Writers business-economics Order the answer to: The reservation prices (in dollars) of three classes of demanders

business-economics

Order the answer to: The reservation prices (in dollars) of three classes of demanders

Question It costs $4 to produce and distribute each compact disk. The company can sell each CD separately, can put them together as a boxed set (that is, as a pure bundle), or can sell them in a mixed bundling format (offer the CDs both separately and as a boxed set). Assume that each demander wants only one of each of the CDs at the reservation price (or at any lower price) and that there are an equal number of demanders in each class. For simplicity, assume that the only costs are those mentioned here.
a. What pricing method would you advise Ricky’s company to use?
b. How much better (profit wise) is the best pricing method than the second most profitable pricing method?
Subject business-economics
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