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Consider the following pricing strategies:a.perfect price discriminationb.charging different prices ...

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Consider the following pricing strategies:a.perfect price discriminationb.charging different prices ...

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

Textbook

Microeconomics

Edition: 7^th

Authors: Hubbard, O'Brien

Read 81 times

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More solutions for this book are available here

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