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1. Your firm produces two products where marginal cost of production for each product is equal...

1. Your firm produces two products where marginal cost of production for each product is equal to $30. The following table shows the reservation prices (minimum price consumers willing to pay) of different types of consumers for each of your product.

consumer type product 1 product 2
A 25 100
B 40 80
C 80 40
D 100 25

Consider three alternative pricing strategies (i) only selling the goods individually (ii) only bundling and (iii) providing both as a package and individually. For each strategy, determine the optimal prices to be charged and the resulting profits.

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