5Table 108 Assume that the marginal cost of a computer is 50

5·(Table 10.8) Assume that the marginal cost of a computer is $500 and the marginal cost of a monitor is $200 Maximum willingness to Pa Computer Monitor 5800 450 625 750 $300 450 425 175 onnet arker Suppose that a mixed bundling strategy sets price for a computer and a monitor at $1,000 or $725 per computer and $425 per monitor. How much producer $1,050 s880 $975 $1,250

Solution

Answer:-  Assume that the marginal cost of a computer is $500 and the marginal cost of a monitor is $200. Suppose that a mixed bundling strategy gives consumers the option to purchase a computer and monitor for $1,000 or the ability to pay $725 per computer or $425 per monitor. How much producer surplus is earned by this strategy?

Correct Option:- $1050

Reason:- Producer surplus is the added money earned by the producer from a equilibrium price.