College XYX has started offering NEW courses not only at its main campuses but also at suburban locations, such as the malls located in nearby cities. In what ways do the offering NEW courses at other locations create producer and consumer borne value to both the university and the malls? What factors affect the ability of the university and malls to capture value?

Question 2.

New Age Corp. has determined that its customer base is divided into two groups: sports fans and news junkies. There are one million sports fans and one million news junkies. The sports fans value the premium sports channel at $40 per month while its news junky customers value the sports channel at $25 a month. However, news junkies value the premium news channel at $40 per month while sports fans value it at $10. Assume that the marginal cost of providing either or both channels to another customer is $0.
a.If New Age Corp. prices each channel separately and at the same price to all customers, what price will it set for each channel and what will be its average total revenues per viewer?
b.If instead New Age Corp offers only a bundled package with the option of buying neither or both the sports and news channels. What price will New Age Corp. set for the bundle? What will be its average total revenue per viewer?
c.What is the effect on New Age Corp.’s profits from bundling?