Two-part tariffs allow the monopoly firm to capture all of the potential consumer surplus generated by the sale of its product
Indicate whether the statement is true or false
False. This is only the case if all consumers are identical. If consumers differ, no single tariff can capture all the consumer surplus.
You might also like to view...
Enforcing property rights in an economy will
A) decrease the level of foreign portfolio investment. B) raise the level of investment. C) cause the market system to work less efficiently. D) encourage corruption and expand the underground economy.
If Tattling Tina wants to not be hit, what strategy could she follow
a. Threaten to not tell b. Always not tell c. Threaten to tell d. All of the above
Macroeconomists are concerned with each of the following issues EXCEPT:
A. Why do the prices of computers increase more slowly than the price of gasoline? B. What are the costs of inflation? C. Why does inflation vary over time? D. Why does inflation vary across countries?
Suppose the United States eliminates high tariffs on German bicycles. As a result, we would expect:
A. the price of German bicycles to increase in the United States. B. employment to decrease in the German bicycle industry. C. employment to decrease in the U.S. bicycle industry. D. profits to rise in the U.S. bicycle industry.