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-Use the Table Above

Question 26

Multiple Choice

 Customer  Product A  Reservation Price  Product B  Reservation Price 11,0002002800400 Marginal Cost 500100\begin{array} { | l | l | l | } \hline \text { Customer } & \begin{array} { l } \text { Product A } \\\text { Reservation Price }\end{array} & \begin{array} { l } \text { Product B } \\\text { Reservation Price }\end{array} \\\hline 1 & 1,000 & 200 \\\hline 2 & 800 & 400 \\\hline \text { Marginal Cost } & 500 & 100 \\\hline\end{array}
-Use the table above. If the firm does not bundle the products, what single price should the firm charge for product B to maximize profit?


A) 100
B) 200
C) 300
D) 400

Correct Answer:

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