In Longolia,beer drinking is associated with blood types.The demand for beer of the three major blood groups is shown below:

-Refer to the above information to answer this question.If the beer producers could price discriminate on the basis of blood types,in order to maximize total revenue what price should be charged to type A,type B and type O respectively?
A)$3,$3 and $4.
B)$3,$4 and $4.
C)$3,$4 and $5.
D)$3.50,$4 and $4.50.
E)$4,$4.50 and $5.

Question

In Longolia,beer drinking is associated with blood types.The demand for beer of the three major blood groups is shown below:
 
-Refer to the above information to answer this question.If the beer producers could price discriminate on the basis of blood types,in order to maximize total revenue what price should be charged to type A,type B and type O respectively?
A)$3,$3 and $4. 
B)$3,$4 and $4. 
C)$3,$4 and $5. 
D)$3.50,$4 and $4.50. 
E)$4,$4.50 and $5.

Quizplus · Accepted Answer

Price discrimination aims to charge each customer the maximum they are willing to pay. Assuming type A is least willing to pay and type O the most, charging $3, $4, and $5 respectively maximizes revenue by capturing the highest willingness to pay from each blood type.

In Longolia,beer Drinking Is Associated with Blood Types