Practice Problem: Bundling as First Degree Price Discrimination

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Hi everyone, In this video I'm going to go through a practice problem which is about perfect or first degree price discrimination through selling a bundle.

Chapters
0:00 Intro
1:16 Drawing Demand and Marginal Cost
2:50 Finding Output Amount
4:25 Price of the Bundle
6:37 Profit
7:37 Welfare

Thi is part c of a larger question about first degree price discrimination. Links to parts a and b:

Part a: First degree PD through setting P=WTP
   • Practice Problem: Perfect (1st Degree...  

Part b: First degree PD through setting Two Part Tariff
   • Practice Problem - Two Part Tariff - ...  

Theory Videos:
   • An Introduction to Price Discriminati...   - Price Discrimination as a Pricing Strategy
   • First Degree Price Discrimination   - Perfect Price Discrimination