What is a better pricing strategy for the

monopolist? What is the resulting profit?

a. Bundle the goods at $2,800;

Profits 5 $5,600

b. Bundle the goods at $4,000;

Profits 5 $8,000

c. Charge $2,800 for good 1 and charge

$1,700 for good 2; Profits 5 $4,500

d. Charge $2,300 for good 1 and charge

$1,200 for good 2; Profits 5 $7,000

 

. Assume that the price elasticity of demand

for movie theatres is 20.85 during all

evening shows but for all afternoon shows

the price elasticity of demand is 22.28.

For the theater to maximize total revenue,

it should

 

a. charge the same price for both shows,

holding other things constant.

b. charge a higher price for the afternoon

shows and lower price for the evening

shows, holding other things constant.

c. charge a lower price for the afternoon

shows and higher price for the evening

shows, holding other things constant.

d. Need more information.