Question

Scenario Bundling 1 :
Konon Company produces both digital camera and photo printers. The marginal cost for a digital camera is 120 and the marginal cost for a photo printer is 80. There are four types of customers for Konon's digital camera and photo printers and their reservation prices are given in the table below.

Reservation Prices	Camera	Printer
A	200	100
B	150	150
C	210	20
D	50	180

The possible pricing strategies are listed in the table below.

Prices	Camera	Printer	Bundle (Camera + Printer)
Seperated Prices	140	100	--
Pure Bundling	--	--	230
Mixed Bundling	200	150	300

You can assume each consumer only need to buy 1 camera and 1 printer and they will purchase a product as long as the consumer surplus from purchasing the product is non-negative.

Refer to Scenario Bundling 1. Assuming there is only one customer of each type, which customer will only purchase a CAMERA if MIXED bundling is offered by Konon?

Hint: You need to figure out the purchase decision for each customer. Given the mixed bundling pricing, what will A buy, what will B buy, what will C buy and what will D buy? You need to perform the analysis in order to reach the correct answer.

	A.	Both A and B
	B.	Only A.
	C.	Only C.
	D.	Both C and D.