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Suppose a firm can distinguish between professors and students. The firm also knows that the quantity demanded by professors at any given price is higher. The marginal cost is 1 for any quantity. Which of the following is true? 

a. The DWL is smaller than if the firm could perfectly price discriminate

b. The MR the firm gets from the last product bought by the students is 1, but the MR the firm gets from the last produce bought by professors is greater than 1.

c. The firm would get more profit if it sets a single price for all consumers rather than setting different prices for professors and students.

d. The MR the firm gets from the last product bought by both students and professors is 1.

Computer Engineering, Engineering

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