Mixed bundling is best because, for each good, marginal production cost ($30) exceeds the reservation price for one consumer. For example, Consumer A has a reservation price of $100 for good 2 and only $20 for good 1. The firm responds by offering good 2 at a price just below Consumer A’s reservation price, so A would earn a small positive surplus by purchasing good 2 alone, and by charging a price for the bundle so that Consumer A would earn zero surplus by choosing the bundle. The result is that Consumer A chooses to purchase good 2 and not the bundle. Consumer C’s choice is symmetric to Consumer A’s choice. Consumer B chooses the bundle because the bundle’s price is equal to the reservation price and the separate prices for the goods are both above the reservation price for either.