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 can identify each consumer type and can price discriminate, what is the optimal price for a pair of pants?

		A. Charge type A consumers $50, and type B consumers $50.
		B. Charge type A consumers $50, and type B consumers $75.
		C. Charge both types $150.
		D. Charge both types $75.

Answer rating: 100% (QA)

Answer Option B Charge type A consumers 50 and type B consumers 75 Since the firm is able to p... View the full answer