× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
b
2
M
2
V
2
f
2
c
2
c
2
K
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
pirex pirex
wrote...
Posts: 634
Rep: 13 1
7 years ago
Explain why a monopoly that knows the demand curve of identical consumers can set a two-part tariff with the lump sum tariff equal to the total amount of potential consumer surplus.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 52 times
1 Reply
And if you call, I will answer
And if you fall, I'll pick you up
And if you court this disaster
I'll point you home

Related Topics

Replies
wrote...
#1
7 years ago
The producer wants to set the lump sum tariff equal to the competitive level of consumer surplus. This maximizes the producer surplus. The consumer surplus measures the difference between the consumer's value of the good and the price paid for each unit. Thus, the consumers are willing to pay up to the total amount of consumer surplus.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1214 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 925
  
 679
  
 285
Your Opinion
Which country would you like to visit for its food?
Votes: 263
Previous poll results: Do you believe in global warming?