Bundling and tying are essentially the same practices

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1734 Bundling and tying are: essentially the same practices. Incorrect different forms of price discrimination. (True Answer )Correct often done at the same time. Incorrect considered illegal in many countries. Incorrect
1735 The more a firm knows about ________ the easier it is for the firm to ________. competitors; advertise Incorrect costs; sell its goods Incorrect supply; price discriminate Incorrect demand; price discriminate (True Answer )Correct
1736 Bundling increases ________ and hence increases the incentives to ________.
The difference between tying and bundling is that:
1738 Table: Maximum Willingness to Pay for Word and Excel AmandaYvonneWord $110 $60 Excel $40 $100 Office (Word + Excel) $150 $160 Reference: Ref 14-7 (Table: Maximum Willingness to Pay for Word and Excel) Refer to the table. If Microsoft sells each product, Word and Excel, individually, what is the maximum profit Microsoft can make from selling the two products? (Assume the marginal costs of production are zero.)$210 (True Answer )Correct $100 Incorrect $220 Incorrect $160 Incorrect 1739 Table: Maximum Willingness to Pay for Word and Excel AmandaYvonneWord $110 $60 Excel $40 $100 Office (Word + Excel) $150 $160 Reference: Ref 14-7 (Table: Maximum Willingness to Pay for Word and Excel)
Refer to the table. If Microsoft bundles Word and Excel and sells them as Office, what is the maximum profit Microsoft can make from selling Office? (Assume the marginal costs of production are zero.)
1740 Bundling can increase efficiency especially when: both fixed costs and marginal costs are high. Incorrect both fixed costs and marginal costs are low. Incorrect fixed costs are high and marginal costs are low. (True Answer )Correct fixed costs are low and marginal costs are high. Incorrect
1741 Bundling can increase efficiency when fixed costs are high because the fixed costs are:

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