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2 weeks ago

Question 1.

If marginal cost is zero, with an optimal two-part tariff

• total revenue is maximized.

• consumers maximize their surplus

• the firm does not have to charge a fixed-fee portion.

• firms may not maximize profit.

Question 2.

Consider the following pricing strategies:
a.perfect price discrimination
b.charging different prices to different groups of customers
c.optimal two-part tariff
d.single-price monopoly pricing

Which of the pricing strategies allows a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing?

• a, b, c, and d

• a, b, and c only

• a and b only

• a and c only
Source  Download
Microeconomics
Edition: 7th
Authors:
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Answer verified by a subject expert
wrote...
Posts: 52
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2 weeks ago
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Answer 1

total revenue is maximized.

Answer 2

a and c only
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