Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 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 charges $100 for a suit (which includes both pants and a coat), the firm will sell a suit to:
A. type A consumers.
B. type A consumers and type B consumers.
C. type B consumers.
D. None of the answers are correct.
Answer: B
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What will be an ideal response?