Suppose Two Types of Consumers Buy Suits

question 122

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.The optimal commodity bundling strategy is:

• A) Charge $150 for a suit.
• B) Charge $75 for a suit.
• C) Charge $100 for a suit.
• D) Charge $125 for a suit.