In Questions a firm sells its product to two groups of buyers: daytime buyers and nighttime buyers. There are 50 daytime buyers, all of whom have identical demands given by D D in the figure below. There are 50 nighttime buyers, all of whom have identical demands given by D N in the figure below. The firm's variable costs are constant (SMC = AVC = $12) and its total fixed cost is $250,000. The marketing director must devise a two-part pricing plan that will maximize the firm's profit.
-How much profit will the firm earn by charging the optimal access charge and optimal access fee (remember that there are 50 daytime and 50 nighttime buyers)?
A) $80,600
B) $90,600
C) $124,600
D) $185,600
E) $215,600

Question

In Questions  a firm sells its product to two groups of buyers: daytime buyers and nighttime buyers. There are 50 daytime buyers, all of whom have identical demands given by D D in the figure below. There are 50 nighttime buyers, all of whom have identical demands given by D N in the figure below. The firm's variable costs are constant (SMC = AVC = $12) and its total fixed cost is $250,000. The marketing director must devise a two-part pricing plan that will maximize the firm's profit. 
-How much profit will the firm earn by charging the optimal access charge and optimal access fee (remember that there are 50 daytime and 50 nighttime buyers)?
A) $80,600 
B) $90,600 
C) $124,600 
D) $185,600 
E) $215,600

Quizplus · Accepted Answer

The Answer of In Questions  a firm sells its product to two groups of buyers: daytime buyers and nighttime buyers. There are 50 daytime buyers, all of whom have identical demands given by D D in the figure below. There are 50 nighttime buyers, all of whom have identical demands given by D N in the figure below. The firm's variable costs are constant (SMC = AVC = $12) and its total fixed cost is $250,000. The marketing director must devise a two-part pricing plan that will maximize the firm's profit. 
-How much profit will the firm earn by charging the optimal access charge and optimal access fee (remember that there are 50 daytime and 50 nighttime buyers)?
A) $80,600 
B) $90,600 
C) $124,600 
D) $185,600 
E) $215,600

In Questions a Firm Sells Its Product to Two