The WWQX Co

Multiple Choice

The WWQX Co.sells shirts.Shirts with the company label on the tag are perceived to be of higher quality than shirts with the store's label.Yet,shirts are of identical quality regardless of the label.The demand for perceived high-quality shirts is p_h = 80 - q_h.The demand for perceived low-quality shirts is p_l = 19 + p_h - q_l.The firm can produce shirts at TC = 2q_h + 2q_l.What prices are charged for the low-quality and for the high-quality shirts?

A) p_l = 31; p_h = 41
B) p_l = 51; p_h = 41
C) p_l = 17; p_h = 45
D) p_l = 35; p_h = 28