A Firm Sells Its Product to Two Groups of Buyers

question 40

Multiple Choice

A firm sells its product to two groups of buyers: daytime buyers and nighttime buyers.There are 50 daytime buyers,all of whom have identical demands given by D_D in the figure below.There are 50 nighttime buyers,all of whom have identical demands given by D_N in the figure below.The firm's variable costs are constant SMC = AVC = $12) and its total fixed cost is $250,000.The marketing director must devise a two-part pricing plan that will maximize the firm's profit. Now suppose the marketing director wishes to serve both daytime and nighttime buyers,what is the MR_f function?

• A)MR_f = 5,000 - 200f
• B)MR_f = 7,500 - 250f
• C)MR_f = 8,000 - 250f
• D)MR_f = 7,500 - 200f

---

Definitions:

Ambiguous Negotiating

Involves discussions or bargaining processes where terms, conditions, or outcomes are not clearly defined or are open to interpretation.

Ethical Tactics

Strategies that adhere to moral principles and upright standards of conduct.

Self-Serving Process

An action or series of actions carried out for one's own benefit, often disregarding others.

Frequent Use

The regular application or employment of a method, tool, or practice within various contexts.