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Suppose two types of consumers buy suits. Consumers of A will pay $100 for a coat and $35 for pants.Consumers of type B will pay
Suppose two types of consumers buy suits. Consumers of A will pay $100 for a coat and $35 for pants.Consumers of type B will pay $75 for a coat and $75 for pants.The firm selling suits faces no competition and has a marginal cost of zero.If the firm cannot observe consumers' types but knows there are 100 A consumers and 100 type B consumers,what is the profit maximizing pricefor coatsif coats and pants are priced and sold separately?
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