Solved

Suppose Two Types of Consumers Buy Suits

Question 54

Multiple Choice

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 sells coats and pants for $25 each,but offers a bundle containing both a coat and pants for $150,how many bundles will the firm sell?


A) 0
B) 1
C) 2
D) Insufficient information

Correct Answer:

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