Price DiscriminationONLY TYPE LOWER CASE (WITHOUT DOT)

A firm has identified two customer segments, less price-sensitive and more price-sensitive segments. Demand functions for the two segments are estimated as follows:

Homogeneous production cost is fixed to $10 per unit.

Q18. Estimate the optimal prices for both segments.

a. (55,33) b. (50,30) c (50,33) d. (55, 30)

Q19. Estimate the total profits with this price discrimination.

a. $56,500 b.$57,500 c$58,500 d. $59,500

Q20. What should be the optimal price if a single pricing policy is used.

a. 36.50 b. 38.33 c. 41.75 d. 45.25