Foreign direct investment-capital injections from abroad-can promote economic growth

What determines the amount of labor that households plan to supply?

What will be an ideal response?

Refer to Figure 16-7. The owners of the Lizard Lounge are considering the following four pricing options:

a. A single price scheme where the cocktail price equals the monopoly price.
b. A single price scheme where the cocktail price equals the competitive price.
c. A two-part tariff: a monopoly cocktail price and a cover charge that will generate total revenue equal to the area X.
d. A two-part tariff: a competitive cocktail price and whatever cover charge that will generate a total revenue equivalent to the area X + Y + Z.

Which pricing scheme(s) achieve the economically efficient outcome?
A) schemes a and c B) scheme b C) schemes b and d D) scheme d only