Two-part tariffs allow the monopoly firm to capture all of the potential consumer surplus generated by the sale of its product
Indicate whether the statement is true or false
False. This is only the case if all consumers are identical. If consumers differ, no single tariff can capture all the consumer surplus.
Economics
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Why did President Obama want to repeal the Bush era tax cuts on upper income taxpayers? How would the repeal of these tax cuts impact aggregate demand and to what degree? How did the economic conditions in 2010 make such a repeal less likely to take place?
Economics
A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its:
A. total variable costs. B. total costs. C. total fixed costs. D. marginal costs.
Economics