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Suppose Two Types of Consumers Buy Suits

Question 137

Multiple Choice

Suppose two types of consumers buy suits.Consumers of type A will pay $100 for a coat and $50 for pants.Consumers of type B will pay $75 for a coat and $75 for pants.The firm selling suits faces no competition and has a marginal cost of zero.If the firm charges $75 for pants and $75 for a coat,the firm will sell a coat to:


A) type A consumers.
B) type B consumers.
C) type A consumers and type B consumers.
D) None of the answers are correct.

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