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.The optimal commodity bundling strategy is:
A) Charge $150 for a suit.
B) Charge $75 for a suit.
C) Charge $100 for a suit.
D) Charge $125 for a suit.
Correct Answer:
Verified
Correct Answer:
Verified
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