Question

Bundling is expected to provide greater profits when the two bundled goods are: i. substitutes. ii. goods that have high fixed costs and low marginal costs. iii. very close complements.

Answer 1

Bundling is expected to provide great profits if the two bundled goods are;

·         They are goods that has fixed cost that are high and has a marginal cost that are low

·         They have complements which are close

-          Bundling is considered to be a strategy in marketing that is responsible of having to join or put together products or services that produces them to be a single unit that are combined.