Suppose two types of consumers buy suits.Consumers of type A will pay $100 for a coat, and $50 for pants.Consumers of type B will pay $75 for a coat, and $75 for pants.The firm selling suits faces no competition and has a marginal cost of zero.If the firm charges $75 for pants and $75 for a coat, the firm will sell a coat to:
A)type A consumers.
B)type B consumers.
C)type A consumers and type B consumers.
D)none of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

Type A consumers will buy a coat because the price is less than what they are willing to pay, and type B consumers will buy a coat because the price is equal to what they are willing to pay.

Suppose Two Types of Consumers Buy Suits