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.If the firm sells coats and pants for $25 each, but offers a bundle containing both a coat and pants for $150, how many bundles will the firm sell?

• A)0.
• B)1.
• C)2.
• D)insufficient information.

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Definitions:

Hair Cells

Sensory receptors for hearing that are attached to the basilar membrane in the cochlea.

Organs of Corti

Located within the cochlea of the inner ear, they are essential for converting sound vibrations into neural signals for hearing.

Frequency Theory

The theory of hearing that holds that hair cell receptors vibrate the same number of times per second as the sounds that reach them.

Neurons

Distinct cells in the nervous system tasked with sending information to other neurons, muscle cells, or glands.