A firm setting a two-part tariff with only one customer should set the entry fee equal to
A) marginal cost.
B) consumer surplus.
C) marginal revenue.
D) price.
B
Economics
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Marginal social cost
A) is the additional cost to the consumer of consuming another unit of a good. B) is equal to price times quantity sold. C) decreases as more of a good is produced and, hence, is depicted by a downward sloping curve. D) is the opportunity cost of producing one more unit of a good and, hence, is the same as the supply curve.
Economics
A game in which all the players are worse off at the end of the game is a
A) negative-sum game. B) dominant strategy game. C) positive-sum game. D) noncooperative game.
Economics