With two-part pricing, a firm
A) charges a lump-sum fee that gives the consumer the right to buy a good or service.
B) must have market power.
C) must be able to prevent resale.
D) All of the above.
D
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Which types of workers are most likely to favor lowering trade barriers in the United States?
What will be an ideal response?
In a perfectly competitive market, in response to a permanent increase in demand:
a. the short run equilibrium price will be higher than the eventual long run equilibrium price b. the short run equilibrium price will be lower than the eventual long run equilibrium price. c. the short run equilibrium price will be the same as than the eventual long run equilibrium price. d. we cannot know whether the short run equilibrium price will be above, below or equal to the eventual long run equilibrium price.
The main objective of advertising for a monopolistically competitive firm is
A) to differentiate the product and raise sales. B) to reduce cost. C) to earn long run profits. D) to comply with government requirements on product information.
As long as market price remains above the average total cost, and the firm chooses the profit-maximizing level of output, it will:
A. make profits. B. earn zero profits. C. make a loss. D. Any of these is possible.