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Consider three pricing strategies that the firm can pursue: a.optimal two-part tariff ...

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Consider three pricing strategies that the firm can pursue: a.optimal two-part tariff ...

Consider three pricing strategies that the firm can pursue:

a.	optimal two-part tariff pricing

b.	perfect price discrimination

c.	single-price monopoly pricing

Of these three strategies, which method gives the firm the highest profit?

▸

single-price monopoly pricing

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perfect price discrimination

▸

optimal two-part tariff pricing

▸

The profit is the same under optimal two-part tariff pricing and perfect price discrimination and the profit is higher than under single-price monopoly pricing.

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InMicro

Edition: 1^st

Authors: Hubbard, O'Brien

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rsbains Author

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