ISI 2011 and 2012 Sample Question

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Zen
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ISI 2011 and 2012 Sample Question

Zen
This post was updated on .
Didn't find the solution anywhere.  Can someone show the steps?



My attempt (Please tell if I am wrong):
I am assuming zero cost of production.
For (i), price of X=3, price of Y=3, net profit to monopolist=12.
For (ii), price of bundle=4, net profit=12.
For (iii), price of X=4, price of Y=4, price of bundle=6, net profit=14.
Thus, (iii) is optimal pricing strategy.


Please help.
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Re: ISI 2011 and 2012 Sample Question

onionknight
I think your solution is correct.