One of the key economic questions is "where should products be produced?"

Refer to Figure 16-6. With a two-part pricing scheme - a monopoly price for classes and a one-time membership fee - what is the amount of producer surplus Sensei will earn?

A) an amount equal to the area A + B + C + D + H + G B) an amount equal to the area A + B + C + D C) an amount equal to the area E + F D) an amount equal to the area A + C + H

Appendix: Revenue equivalence theorem refers to equal seller revenue in which of the following pairs:

a. sealed bid auctions and English auctions b. second highest wins and pays auctions and Dutch auctions c. English highest wins and pays auctions and sealed bid Dutch auctions d. highest wins and pays auctions and second highest wins and pay auctions