Firms that have market power can apply the mixed bundlingstrategy to increase their profits. Some researchers claim thateven if a firm does not have any market power, i.e., even in acompetitive market, firms can use mixed bundling (for example,those small restaurants/fast food restaurants located in theshopping malls). Explain why and how firms in competitive marketsmay apply mixed bundling. Provide a numerical example to prove yourcase.
