You Currently Sell the Same Product to Both Professional Plumbers

question 7

Multiple Choice

You currently sell the same product to both professional plumbers and homeowners, and are able to prevent transfer from one group to the other. Your current prices, quantities sold, and the absolute values of the slopes of the demand curves are as follows: If your marginal cost is $10 and you are interested in maximizing your revenues, how would you adjust your prices?

• A) Increase plumbers' price and decrease homeowners' price.
• B) Decrease plumbers' price and increase homeowners' price.
• C) Increase prices for both groups.
• D) Decrease prices for both groups.

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Definitions:

Intestinal Villi

Small, finger-like projections that extend into the lumen of the small intestine, greatly increasing its surface area for nutrient absorption.

Intestinal Glands

Glands located in the lining of the small and large intestines that secrete digestive enzymes and other substances to aid in digestion and nutrient absorption.

Pharynx

The muscular tube that connects the mouth and nasal passages to the esophagus and larynx, serving both respiratory and digestive functions.

Primary Teeth

The first set of teeth in the development of humans and other mammals, also known as baby or milk teeth, which are eventually replaced by permanent teeth.