Which of the following statements is true of price bundling?
a. Bundling can be an important income stream for businesses where the variable costs tend to be very high.
b. Companies use bundling as a way to fight off competition by locking customers into a group of services.
c. Comparison shopping is easy since consumers are able to determine how much they are really paying for each component of a bundle.
d. Variable costs tend to be high when price bundling is practiced.
Answer: b.