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Deep Clean, Inc., provides deep cleaning services for retail locations that have been exposed to virus-infected individuals. They have three types of potential customers: Type
Deep Clean, Inc., provides deep cleaning services for retail locations that have been exposed to virus-infected individuals. They have three types of potential customers: Type 1: Businesses serving individuals who are not at risk and that can maintain 6-foot distance Type 2: Businesses serving individuals who are not at risk, but that cannot maintain 6-foot distance Type 3: Businesses serving at-risk individuals Deep Clean's services come in three distinct versions: " Basic" : surface-level cleaning with normal cleaners " Intense" : surface-level cleaning with medical-grade cleaners " Extreme" : deep cleaning with medical-grade cleaners For the purposes of these questions, assume that Deep Clean's costs are zero. The marginal willingness to pay for the different customer types is given in the following table: Basic Upgrade to Upgrade to Intense Extreme Group Sizes Type 3 50 25 20 5 Type 2 40 10 5 6 Type 1 20 5 13. Suppose that Deep Clean offers the following menu to all its customers: " Basic" for $15 " Intense" for $35 " Extreme" for $70 Which of the following is correct: Type What they purchase Total consumer surplus A. Extreme $125 Intense $180 Basic $35 Type What they purchase Total consumer surplus Extreme $125 B. Intense $90 Basic $70 Type What they purchase Total consumer surplus C. 3 Intense $200 Basic $150 Basic $35 Type What they purchase Total consumer surplus Extreme $125 D. 3 Basic $150 Basic $70 E. None of the above is correct
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