A Firm Sells Its Product to Two Groups of Buyers

question 45

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. Assuming both daytime and nighttime markets are served,the optimal per unit usage fee f*) is

• A)f * = $24
• B)f * = $34
• C)f * = $44
• D)f * = $54
• E)f * = $64

---

Definitions:

George Kelly

An American psychologist known for his development of personal construct psychology.

Interpersonal Circumplex

A model that categorizes and describes human interpersonal behaviors and personality traits along two dimensions: dominance and warmth.

Skills

The ability to do something well; expertise or competence in a particular activity or domain.

Challenges

In a general context, challenges are obstacles or difficulties that need to be overcome, often requiring effort, skill, or strategy.