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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

Microeconomics, Economics

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