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(Figure: Groups A and B I) Suppose a rm has two types of customers but cannot tell which type of buyer the customer is before
(Figure: Groups A and B I) Suppose a rm has two types of customers but cannot tell which type of buyer the customer is before a purchase is made. If the rm charges $12 per unit for any quantity, but $7 for 3 or more units the pricing scheme would: Group A Price (s) m tMWIhulm-QDLD 0 12345679910 Quantity Group B l 2 3 4 5 6 7 Quun'ltir Q be incentive-compatible for Type B customers and therefore be successful at having consumers self-select into the appropriate type. 0 not be incentive-compatible for Type A customers and therefore be unsuccessful at having consumers self-select into the appropriate type. 0 be incentive compatible for both groups. C) perfectly price the market
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