A firm sells an identical product to two groups of consumers, A ...

[stephzh]

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]

Answer to Question 1

C

Answer to Question 2

D

[stephzh]

Thank you

[uniquea123]

No problemo