1. Why might a firm try to implement a tying arrangement? What is the difference between tying and bundling?

2. How might bundling increase a firm’s profits? When is bundling not likely to increase profits?

3. Even if a monopolist knows that advertising shifts the demand curve for its product to the right, why might it decide not to advertise at all? If it does advertise, what factors determine how much advertising it will do?

 

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now