Biology Forums - Study Force

Question 1.

Figure 16-5




Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price. (This is also called a two-part tariff.) What is the profit earned under this pricing scheme?

• $5,760

• $6,400

• $7,680

• $7,870

Question 2.

Figure 16-5




Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price. (This is also called an optimal two-part tariff.) What is the quantity it should produce?

• 240 units

• 320 units

• 480 units

• 560 units

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Smart ... Thanks!