A monopolist maximizes profit at the quantity where its total revenue curve equals total cost

If marginal cost is zero, with an optimal two-part tariff

A) total revenue is maximized. B) the firm does not have to charge a fixed-fee portion. C) consumers maximize their surplus D) firms may not maximize profit.

One reason why consumers are unlikely to be too upset about tariffs is because

A) most consumers benefit from protection. B) tariffs are an inexpensive way to create jobs. C) consumer losses are not real losses. D) the costs are so spread out that no one pays a big share of the total.