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Mixed Bundling Is Sometimes the Most Profitable Strategy for a Firm

Question 49

Multiple Choice

Mixed bundling is sometimes the most profitable strategy for a firm:


A) because the firm can more accurately assess the reservation price of each consumer.
B) because consumers prefer to spend in binges and make multiple purchases at the same time.
C) when the firm has high delivery or shipping costs.
D) because this strategy discourages a customer from buying a component when his/her willingness to pay is less than the marginal cost of a component of the purchase.

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