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wrote...
Posts: 58
2 weeks ago

Question 1.

One method of setting price using the cost-plus method is to add

• a given percentage of marginal cost to marginal cost of production.

• a given percentage of fixed cost to total fixed cost.

• a given percentage of average total cost to average total cost.

• a given percentage of average variable cost to average total cost.

Question 2.

With an optimal two-part tariff

• consumer surplus equals producer surplus.

• all consumer surplus is transformed into profit.

• consumers maximize consumer surplus.

• the firm earns zero profit.
Source  Download
Microeconomics
Edition: 7th
Authors:
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Answer verified by a subject expert
wrote...
Posts: 53
2 weeks ago
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Answer 1

a given percentage of average total cost to average total cost.

Answer 2

all consumer surplus is transformed into profit.
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2 weeks ago
Helps a lot... Now I'm ready for my quiz
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