A Firm Sells Its Product to Two Groups of Buyers

question 43

Multiple Choice

A firm sells its product to two groups of buyers: daytime buyers and nighttime buyers.There are 50 daytime buyers,all of whom have identical demands given by D_D in the figure below.There are 50 nighttime buyers,all of whom have identical demands given by D_N in the figure below.The firm's variable costs are constant (SMC = AVC = $12) and its total fixed cost is $250,000.The marketing director must devise a two-part pricing plan that will maximize the firm's profit. Assuming both daytime and nighttime markets are served,the optimal per unit usage fee (f*) is

• A)f * = $24
• B)f * = $34
• C)f * = $44
• D)f * = $54
• E)f * = $64

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Definitions:

Business Processes

The collection of linked tasks and activities that transform inputs into outputs, thereby achieving a specific organizational goal.

Supply Chain Performance

The measurement of how effectively and efficiently a supply chain operates, including metrics such as delivery times, costs, and quality.

Event Management Systems

Technology platforms used for planning, organizing, and managing events and meetings, streamlining tasks from registration to attendee tracking and reporting.

Supply Chain

The connected network of individuals, organizations, resources, activities, and technology involved in the manufacture and sale of a product, from raw material to final customer.