Intermediate Microeconomics: Bundling

#bundling #intermediatemicroeconomics
I walk through a numerical example that shows where bundling maximizes profits (where demands are similar and negatively correlated) and where it doesn't (where demands are positively correlated)

[@san8590]

Ben please do a video on mixed bundling.
Thank you for the amazing videos.

[@sophiaagostinelli3590]

You're the reason I'm passing Econ, please keep doing videos !!

[@danielliu2869]

Would you record the video about bundling pricing for three goods?

[@dreamcatcher75418]

Very good video!

[@khadijasaadallah5050]

really good and clear explanation! thanks,

[@BenZamzow]

Great to hear!

[@debapriyaguha7594]

excellent explanation thanks!

[@madhuravi6953]

at 7:22, is it because the cost for Good A is 10 and Good is 10 or is it because the MC of each bundle is 10 and hence two bundles times 10 is 20? When we do a bundle, do we take into account costs of each goods separately or as a bundle?

[@BenZamzow]

For the bundle we'll add the marginal costs from both of the constituent goods (So if MCa = 10 and MCb = 10, then MC of the bundle is 20).

[@gabepizarro8899]

But you sold two bundles so wouldnt total MC=$40

[@vincentangelliwag2845]

nice explanation Sir 💗

[@namelessbecky]

thank you

[@tylerbotzon6457]

Thanks, Come teach at Cornell. No love out here.

[@BenZamzow]

My great-uncle was on the faculty there actually!