Question: Price Discrimination ONLY TYPE LOWER CASE (WITHOUT DOT) A firm has identified two customer segments, less price-sensitive and more price-sensitive segments. Demand functions for the

  1. Price Discrimination ONLY TYPE LOWER CASE (WITHOUT DOT)

    A firm has identified two customer segments, less price-sensitive and more price-sensitive segments. Demand functions for the two segments are estimated as follows:

    Homogeneous production cost is fixed to $10 per unit.

    a. Estimate the optimal prices for both segments.

    a. (55, 33) b. (50, 30) c (50, 33) d. (55, 30)

    b. Estimate the total profits with this price discrimination.

    a. $56,500 b. $57,500 c $58,500 d. $59,500

    c. What should be the optimal price if a single pricing policy is used.

    a. 36.50 b. 38.33 c. 41.75 d. 45.25

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