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Suppose that two theaters are willing to pay the following maximum rental fees for Gladiator and Rocky and Bullwinkle. Theater The Maximum Price per Film Gladiator Rocky and Bullwinkle Regal Cinemas 200 140 AMC 120 100 Would it be profitable to bundle the two films together

Respuesta :

It would not be profitable for producers of Gladiator and Rocky and Bullwinkle to bundle the two films together.

What is product bundling?

Product bundling is a practice whereby two or more products are grouped together and sold as one product.

While the promotional strategy encourages customers to buy more products from one company, product bundling is not attractive to all customer segments.

Data and Calculations

Product Bundling and their Retail Prices:

Theater       G         R

A              200      140

B              120      100

Thus, it would not be profitable for producers of Gladiator and Rocky and Bullwinkle to bundle the two films together.

Learn more about product bundling at https://brainly.com/question/7156426