The only car shop in town offers two services: oil changes and tire rotations. The shop has two types of customers one type of customer generally drives long distances on straight roads, and one type of customer generally drives short distances but makes many turrs. Heavy-turn drivers are Willing to pay $36 for a tire rotation and $9 for an oil change. Long distance drivers are willing to pay $27 for a tire rotation and $27 for an oil change. Assume that the car shop can provide each of these services at a zero marginal cost. There are equal numbers of customers of each type
Suppose the shop is able to use tying (bundling) to price oil changes and tire rotations, though it may still also sell each service individually. If the shop wants to maximize profits, how should it price the services (where Puntle stands for the price of the bundle, Pure stands for the price of a tire rotation, and stands for the price of an oll change)?
Choose one or more:
A. Punde = $54. Pore - $36. Pa > 527
B. Purtle = $45, P. $36. P. 2518
C. Pe = $54. Prire = $27, P = $9
D. Punde = $54. Pie 2 S36, Por $9
E. Ped = $45. P = $27. P $18