Panel A shows an unbundled allocation where the optimum is at a point interior to \(\mathcal{B}\) satisfying the usual tangency conditions so that skill prices are equalized across occupations, \(\lambda_{1X}/\lambda_{1Y} = \lambda_{2X}/\lambda_{2Y}\). Panel B shows a bundled allocation where the desired tangency point lies outside \(\mathcal{B}\) and the optimum is on the boundary \(\underline{B}(X_1)\), generating a skill price wedge \(\lambda_{1X}/\lambda_{1Y} > \lambda_{2X}/\lambda_{2Y}\).