Multiple Choice
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 DD in the figure below.There are 50 nighttime buyers,all of whom have identical demands given by DN 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. If a firm is selling a product in two markets,A and B,and the marginal revenue in A is $25 and the marginal revenue in B is $20,the firm should
A) charge a higher price in A where MR is higher
B) charge a lower price in B where MR is lower
C) sell more in B and less in A
D) sell more in A and less in B
E) both a and c
Correct Answer:

Verified
Correct Answer:
Verified
Q21: A drugstore offers a discount on prescriptions
Q39: In order to maximize profit,a firm producing
Q49: Refer to the following: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2562/.jpg" alt="Refer
Q50: firm faces the demand for its product,
Q51: The following graph shows the demands and
Q52: A firm sells two goods X and
Q53: A firm sells its product to two
Q54: Black Diamond Tennis & Golf Club offers
Q55: The following graph shows the demands and
Q57: A firm sells its product to two