In two-part pricing with identical consumers, a firm at least
A) charges a lump-sum fee equal to the producer surplus.
B) sets unit price equal to marginal cost.
C) cannot maximize profit compared to single-price monopoly pricing.
D) Both A and B.
B
Economics
You might also like to view...
Refer to the information. Over the $7-$5 price range, demand is:
A. perfectly elastic.
B. perfectly inelastic.
C. elastic.
D. inelastic.
Economics
Which of the following statements about incentives is true?
a. Changing one incentive can result in several unseen effects. b. Understanding how people respond to incentives helps government planners organize the economy. c. Fair-minded people who care about others will not be affected by incentives. d. Emphasizing incentives ignores altruistic nonmonetary values.
Economics