Suppose a Firm Has Two Types of Customers but Cannot

question 41

Multiple Choice

Suppose a firm has two types of customers but cannot tell which type of buyer a customer is before a purchase is made. One group has an inverse demand of P = 100 - 10Q; another has an inverse demand curve of P = 110 - 22.5Q. The marginal cost of production is constant at $20. If the firm wanted to use quantity discounting, it should charge _____ per unit for any quantity purchased or _____ or more units.

• A) $65; $60 for 4
• B) $50; $40 for 8
• C) $25; $20 for 2
• D) $85; $75 for 6

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Definitions:

Supportive Communication

Communication that seeks to preserve a positive relationship between communicators while addressing a problem, focusing on empathy and understanding.

Directive Communication

A communication style where instructions, orders, or directions are given clearly and explicitly to achieve a specific objective.

Reflective Style

A method of operation or behavior characterized by thoughtful consideration and contemplation of one's actions and their impacts.

Reflective Communication

A process of sending and receiving messages that involves thinking carefully about the message's content and impact.