Suppose Two Types of Consumers Buy Suits

question 47

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.If the firm charges $75 for pants and $75 for a coat, the firm will sell a coat to:

• A)type A consumers.
• B)type B consumers.
• C)type A consumers and type B consumers.
• D)none of the statements associated with this question are correct.

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Definitions:

Confidence Level

The probability that a parameter lies within a specified range of values, often used in interval estimation to convey the reliability of an estimate.

Assignable Cause

An identifiable factor that causes a change or variation in a process or system, distinguishable from random variation.

Variation

The degree to which data points in a dataset differ from each other and from the mean, indicating the dispersion within the dataset.

Output

The result or product generated by a process or system.