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Firms that have market power can apply the mixed bundling strategy to increase their profits. Some...

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Economics

Firms that have market power can apply the mixed bundlingstrategy to increase their profits. Some researchers claim thateven if a firm does not have any market power, i.e., even in acompetitive market, firms can use mixed bundling (for example,those small restaurants/fast food restaurants located in theshopping malls). Explain why and how firms in competitive marketsmay apply mixed bundling. Provide a numerical example to prove yourcase.

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ANSWER Generally mixed bundling means firms will offer packages sometimes with the individual product Packages are provided with the good discount rate when compared to its components For instance tour packages Usually    See Answer
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