Two-part pricing offers a mechanism whereby the firm can
A) charge two different prices to distinct groups of customers.
B) collect two times as much from consumers as a single-price monopoly can.
C) capture some or all of the consumer surplus.
D) reduce some of its fixed costs.
C
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According to Robert Solow, the production function should be written as
A) Y = F(K, L, A). B) Y = F(K, L). C) Y = F(A, L). D) Y = F(K, A).
Exhibit 4-3 Supply and demand curves
Initially the market shown in Exhibit 4-3 is in equilibrium at P3, Q3 (E3). Changes in market conditions result in a new equilibrium at P2, Q2 (E2). This change is stated as a:
A. decrease in demand and an increase in supply. B. decrease in demand and a decrease in quantity supplied. C. decrease in quantity demanded and an increase in quantity supplied. D. decrease in quantity demanded and an increase in supply.
When a government intervenes to achieve a surplus in the nation's balance of trade, this action is consistent with the main tenet of ______
Fill in the blank(s) with the appropriate word(s).
A legal claim entitling the owner of the claim to fixed annual payments and a lump-sum payment is called a(n)
A. equity share. B. stock. C. bond. D. debit.