In Questions a Firm Sells Its Product to Two

Multiple Choice

In Questions 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.
-Assuming the firm will serve both daytime and nighttime buyers, what is the MC_f function?

A) MC_f = -1,800
B) MC_f = -2,000
C) MC_f = 8,000 - 250f
D) MC_f = 7,500 + 200f
E) none of the above