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A computer hardware firm sells both laptop computers and printers
A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below.
Laptop Printer Bundle Customer A $900 $100 $1,000 Customer B $1,000 $50 $1,050 Customer C $650 $150 $800
Assume for simplicity the marginal cost of production for laptops and printers is zero.
If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for simplicity that the firm has only one customers of each type, how much does it earn in total?
To maximize profit using individual prices, the firm should charge a price for laptops of and a price for printers of (Enter your responses as whole numbers.)
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