(Figure: Type A and Type B I) Suppose a firm plans to use indirect price discrimination through quantity discounts. The firm cannot identify which customers are Type A or Type B before the purchase, so the firm would like to offer a regular-price plan and a quantity-discount plan to suit the customers' personal price sensitivity.
The minimum number of units customers should have to buy to get the discount is ____.
A) 3
B) 4
C) 5
D) 6

Question

(Figure: Type A and Type B I) Suppose a firm plans to use indirect price discrimination through quantity discounts. The firm cannot identify which customers are Type A or Type B before the purchase, so the firm would like to offer a regular-price plan and a quantity-discount plan to suit the customers' personal price sensitivity.  
The minimum number of units customers should have to buy to get the discount is ____.
A) 3 
B) 4 
C) 5 
D) 6

Quizplus · Accepted Answer

The Answer of (Figure: Type A and Type B I) Suppose a firm plans to use indirect price discrimination through quantity discounts. The firm cannot identify which customers are Type A or Type B before the purchase, so the firm would like to offer a regular-price plan and a quantity-discount plan to suit the customers' personal price sensitivity.  
The minimum number of units customers should have to buy to get the discount is ____.
A) 3 
B) 4 
C) 5 
D) 6

(Figure: Type a and Type B I) Suppose a Firm