A Firm Sells Its Product to Two Groups of Buyers

question 57

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. A firm selling in two markets is practicing price discrimination

• A)anytime it charges different consumers different prices.
• B)when it is charging different consumers different prices and the price difference is not based upon cost differences.
• C)when it refuses to sell the good to some group of consumers.
• D)all of the above
• E)none of the above

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Definitions:

Community Responsibility

The duty of businesses and organizations to contribute positively to the welfare of the society and the environment in which they operate.

Stakeholder Responsibility

Stakeholder responsibility refers to the obligation of an organization to act in the best interests of all parties who have a stake in its operations and outcomes.

Benefit Marketing

A marketing strategy that focuses on highlighting the advantages or benefits that a product or service offers to consumers.

Profit Responsibility

An obligation to manage activities and resources in such a way as to achieve financial profitability for an organization.