Consider three pricing strategies that the firm can pursue:
a. optimal two-part tariff pricing
b. perfect price discrimination
c. single-price monopoly pricing.
Of these three strategies, which is least likely to benefit society as a whole?
A) single-price monopoly pricing because there are mutually beneficial trades (between consumers and seller) that are not exploited
B) Both perfect price discrimination and two-part tariff pricing do not benefit society because the entire consumer surplus is extracted by the producer.
C) perfect price discrimination because those willing to pay higher prices are forced to subsidize those who are not
D) a two-part tariff pricing because consumers have to pay a fixed fee in addition to a per-unit price
A
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The aggregate savings in an economy is $1,750 and the GDP of the economy is $55,000. The savings rate in the economy is:
A) 1.8%. B) 3.15%. C) 10%. D) 8.96%.
The figure above shows the U.S. supply of labor curve. What was the effect of the decline in birth rates during the 1960s and 1970s on the supply of labor curve in the 1980s?
A) a leftward shift of the supply of labor curve B) a rightward shift of the supply of labor curve C) a movement downward along the supply of labor curve from a point such as A to a point such as B D) The supply of labor curve became steeper. E) None of the above answers is correct because there was no change in the supply of labor curve.