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Using the Marginal Approach

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Problem 4: Bundling (40 points) Time Warner could offer the History channel (H) and Showtime (S) individually or as a bundle of both.Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are presented in the boxes below.The cost to Time Warner is $1 per customer for licensing fees. Preferences ShowtimeHistory Channel.
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