Question: Suppose that ABC Publishing sells an economics textbook and an accompanying study guide. Bob is willing to pay $75 for the text and $15 for the study guide. Mary is willing to spend $60 for the text and $25 for the study guide. Suppose both the book and study guide have a zero marginal cost of production.
If ABC Publishing engages in tying, its best strategy is to charge a combined price of
a. $60
b. $75
c. $80
d. $85
e. $90