Assume that Sweden will specialize in either boats or cars. What is their opportunity cost of producing three cars?

A firm using a two-part tariff faces a tradeoff because

A) any increase in consumer surplus must be offset by a decrease in producer surplus. B) the only way to increase the fixed-fee portion of the price is to lower the per-unit portion of the price. C) the only way to increase total revenue is to lower per-unit profit. D) the smaller the variation between the parts of the price, the greater the deadweight loss generated by the pricing scheme.

With the elimination of the Civil Aeronautics Board (CAB), safety and quality are no longer directly regulated by government, instead, the incentive for airline safety and quality is driven by market reputation

Indicate whether the statement is true or false