Both first-degree price discrimination and optimal two-part tariff pricing maximize economic surplus

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________ in the market and the price will ________

A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall

Refer to Table 5.3. The expected returns are highest for the physician who

A) works for an HMO. B) opens her own practice. C) does research. D) either opens her own practice or does research. E) either works for an HMO or does research.