Business, 06.10.2019 01:00 mollycompton04

Consider a firm with market power that sells suits. the firm has two types of customers, a and b. there are an equal number of customers of each type. type-a customers are willing to pay up to $100 for a coat and up to $50 for a pair of pants. type-b customers are willing to pay up to $75 for a coat and up to $65 for a pair of pants. suppose for simplicity that the marginal cost of production is zero. if the firm engages in first-degree price discrimination, then it will(a) charge both types of customers $150 for a suit.(b) charge both types of customers $140 for a suit.(c) charge type-a customers $150 for a suit, and type-b customers $140 for a suit.(d) charge type-a customers $175 for a suit, and type-b customers $115 for a suit.

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Consider a firm with market power that sells suits. the firm has two types of customers, a and b. th...

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