Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B will pay $75 for a coat and $75 for pants. The firm selling suits faces no competition and has a marginal cost of zero. If the firm can identify each consumer type and can price discriminate, what is the optimal price for a pair of pants?

A. Charge both types $150.

B. Charge both types $75.

C. Charge type A consumers $50, and type B consumers $75.

D. Charge type A consumers $50, and type B consumers $50.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91236207

Have any Question?


Related Questions in Microeconomics

Question the demand for boobles can be written as q 11000

Question: The demand for boobles can be written as: Q = 11,000 - 8P. Calculate the price, quantity, total revenue and marginal revenue when the elasticity of demand = -2.2. Calculate the price, quantity, total revenue an ...

Question in the paper the signaling value of a high school

Question: In the paper "The Signaling Value of a High School Diploma" (Journal of Political Economy, 2014), Clark and Martorell attempt to differentiate between signaling and human capital theories of the returns to educ ...

Question suppose you are in charge of a public-health

Question: Suppose you are in charge of a public-health campaign to improve prenatal development in the United States. Due to funding constraints you can only focus on one factor. What factor would be the focus of your ca ...

Question 1 suppose demand and supply have constant

Question: 1. Suppose demand and supply have constant elasticity equal to 3. What happens to equilibruim price and quantity when the demand increases by 3% and supplu decreases by 3%? 2. Show that elasticity can be expres ...

Question - let demand be given by qd 8 - 2p let supply be

Question - Let demand be given by QD = 8 - 2P; let supply be given by QS = 2P. A tax of $2 per unit is imposed on consumer, what is the new equilibrium price [the price paid by the consumer]?

Question an auto repair shop is considering purchasing

Question: An auto repair shop is considering purchasing automated paint-spraying equipment. The company estimates that the equipment will last five years. Each year, it will save the company $4,000 in paint wasted in the ...

Question how might collective decision making play a role

Question: How might collective decision making play a role in the decision to buy a cell phone for a young child? Provide a possible scenario for this decision including the five decision making roles in your example. Pr ...

Question draw typical home market supply and demand curves

Question: Draw typical Home market supply and demand curves, and then derive import market Home demand curve. After superimposing Foreign export supply over Home import market demand curve for a Small (Home) Country. Sho ...

Question write a thorough analysis of unemployment defining

Question: Write a thorough analysis of unemployment, defining the various types of unemployment, full employment, and the natural rate of unemployment. Describe the impact of unemployment on the economy and your solution ...

Question it is hot day and bert is thirsty here is the

Question: It is hot day, and Bert is thirsty, here is the value he places on a bottle of water: Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value of fourth bottle $1 a) From this informati ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As