Suppose That There Are Four Consumers Whose Maximum Willingnesses to Pay

question 17

Multiple Choice

Suppose that there are four consumers whose maximum willingnesses to pay for a good are $20, $15, $8, and $4, respectively. A firm can produce and sell the good at a constant marginal cost of $6. If the firm practiced perfect price discrimination, its total revenues would equal:

• A) $18.
• B) $24.
• C) $43.
• D) $47.

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Definitions:

Marketing Manager

A professional responsible for planning, developing, implementing, and overseeing marketing strategies to promote products or services and increase market share.

Controller

A high-level executive responsible for a company's financial statements, accounting, and financial planning.

Flexible Short-term Financial Policy

A financial strategy that emphasizes maintaining liquidity and flexibility in meeting short-term obligations without committing to long-term financial decisions.