Suppose Two Types of Consumers Buy Suits

question 137

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 answers are correct.

---

Definitions:

Contingency

A concept in management and organization theory that suggests there is no one best way to make decisions or organize a corporation, but rather that the best course of action depends on the specific internal and external situation.

Coercive

Coercive power is the ability of a person to force others to comply with demands or orders through the threat of punishment or negative sanctions.

Visibility

The degree to which activities, decisions, or processes are observable, understandable, and known by others within and outside an organization.

Artwork

The creation or expression of something beautiful or significant through skills and imagination, encompassing various forms such as painting, sculpture, and other visual media.