(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 price the firm should set for the discount plan is $____.
A) 3.50
B) 3.00
C) 2.50
D) 2.00

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 price the firm should set for the discount plan is $____.
A) 3.50 
B) 3.00 
C) 2.50 
D) 2.00

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 price the firm should set for the discount plan is $____.
A) 3.50 
B) 3.00 
C) 2.50 
D) 2.00

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