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 both daytime and nighttime markets are served, the optimal per unit usage fee (f*) is

A) f * = $24
B) f * = $34
C) f * = $44
D) f * = $54
E) f * = $64