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A coffee store has researched its market and identified two market segments 1 and 2. Using surveys, for each segment, the store learned weekly average

image text in transcribed A coffee store has researched its market and identified two market segments 1 and 2. Using surveys, for each segment, the store learned weekly average demand per consumer at four different price levels ( $1,$1.5,$2, and $2.5). For example, on average, a consumer in segment 1 will buy 8 cups/week at $1 price/cup. Assume that segments 1 and 2 include 100 and 200 consumers, respectively. Assume that the marginal costs are $0.50/ cup. Suppose that the store considers charging different prices for the two segments (i.e., the third-degree price discrimination). What are the maximum total profits/week? (Hint: find the optimal prices for the two segments separately and sum the optimal profits from the two segments.) Select one: A. $2300 B. $2400 C. $2500 D. $2600

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