Author Question: The basic difference between mixed and pure bundling is that A) in pure bundling, buyers can only ... (Read 106 times)

DelorasTo · **on:** Jun 30, 2018

The basic difference between mixed and pure bundling is that
A) in pure bundling, buyers can only buy a collection of goods, while with mixed bundling, they can buy the collection or the components of the collection separately.
B) in pure bundling, buyers must buy a collection of goods, while in mixed bundling, buyers pay different prices for the same collection.
C) price elasticities are generally elastic when pure bundling is used while unitary elasticity is prevalent when mixed bundling is used.
D) the costs of production vary between the two types of bundling.

Question 2

When firms price based on the packaging of several products, they are
A) using a limit price.
B) predatory in their marketing.
C) bundling.
D) none of these choices.