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Author Question: A firm sells an identical product to two groups of consumers, A and B. The firm has decided that ... (Read 109 times)

stephzh

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on: Jul 1, 2018
A firm sells an identical product to two groups of consumers, A and B. The firm has decided that third-degree price discrimination is feasible and wishes to set prices that maximize profits.
 
  Which of the following best describes the price and output strategy that will maximize profits? A) PA = PB = MC.
  B) MRA = MRB.
  C) MRA = MRB = MC.
  D) (MRA - MRB) = (1 - MC).

Question 2

Refer to Figure 9.3. If the market is in equilibrium, total consumer and producer surplus is
 
  A) 0.
  B) 4.
  C) 5.
  D) 600.
  E) 800.


uniquea123

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Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

D


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stephzh

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Reply #2 on: Jul 1, 2018
Thank you


uniquea123

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Reply #3 on: Jul 1, 2018
No problemo


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