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TABLE 10- 2 Your Food- Services Company Has Been Named

Question 89

Multiple Choice

TABLE 10- 2 Your food- services company has been named as the sole provider of meals at a small university.The cost and demand schedules are:  Sold per Day  Price per  Meal  Total  Fixed Cost  Total  Variable Cost  Total  Revenue 0$3.50$150$0$0100$3.25$150$300$325200$3.00$150$500$600300$275$150$650$825400$250$150$750$1000500$225$150$830$1125600$200$150$905$1200700$1.75$150$995$1225\begin{array} { | c | c | c | c | c | } \hline \text { Sold per Day } & \begin{array} { c } \text { Price per } \\\text { Meal }\end{array} & \begin{array} { c } \text { Total } \\\text { Fixed Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Variable Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Revenue }\end{array} \\\hline 0 & \$ 3.50 & \$ 150 & \$ 0 & \$ 0 \\\hline 100 & \$ 3.25 & \$ 150 & \$ 300 & \$ 325 \\\hline 200 & \$ 3.00 & \$ 150 & \$ 500 & \$ 600 \\\hline 300 & \$ 275 & \$ 150 & \$ 650 & \$ 825 \\\hline 400 & \$ 250 & \$ 150 & \$ 750 & \$ 1000 \\\hline 500 & \$ 225 & \$ 150 & \$ 830 & \$ 1125 \\\hline 600 & \$ 200 & \$ 150 & \$ 905 & \$ 1200 \\\hline 700 & \$ 1.75 & \$ 150 & \$ 995 & \$ 1225 \\\hline\end{array}
-Suppose the market for some product can be divided into two segments,each with a linear demand curve.A monopolist can set a different price (but only one price) in each segment.The profit- maximizing price discrimination across these two market segments will lead to


A) higher output with average revenue higher than the best single price.
B) higher output with average revenue lower than the best single price.
C) lower output with a higher average revenue than the best single price.
D) lower output with total revenue higher than the single best price.
E) the same output but higher average revenue than the best single price.

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