A Firm Sells Its Product to Two Groups of Buyers

Multiple Choice

A firm sells its product to two groups of buyers: daytime buyers and nighttime buyers.There are 50 daytime buyers,all of whom have identical demands given by D_D in the figure below.There are 50 nighttime buyers,all of whom have identical demands given by D_N in the figure below.The firm's variable costs are constant (SMC = AVC = $12) and its total fixed cost is $250,000.The marketing director must devise a two-part pricing plan that will maximize the firm's profit. Now suppose the marketing director wishes to serve both daytime and nighttime buyers,what is the MR_f function?

A) MR_f = 5,000 - 200f
B) MR_f = 7,500 - 250f
C) MR_f = 8,000 - 250f
D) MR_f = 7,500 - 200f