In two-part pricing with identical consumers, a firm at least
A) charges a lump-sum fee equal to the producer surplus.
B) sets unit price equal to marginal cost.
C) cannot maximize profit compared to single-price monopoly pricing.
D) Both A and B.
B
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Which of the following statements is true of open-market operations?
a. Open-market operations involve clearing checks b. Open-market operations involve lending money to member banks. c. Open-market operations involve accepting deposits from member banks. d. Open-market operations involve the Fed's purchase and sale of government securities. e. Open-market operations involve the Fed's purchase and sale of foreign exchange.
If a college student's demand for newspaper subscriptions is more price-elastic than a business executive's demand for newspaper subscriptions, which of the following pricing strategies would a price-discriminating newspaper publisher follow?
A. Set price according to the marginal cost of printing the newspaper B. Charge a higher price to college students C. Charge a higher price to business executives D. Charge the same rate to college students and business executives
Due to the network externalities in the game console market, we would expect this market to
A. be efficient. B. be serviced by a natural monopoly. C. be highly concentrated. D. overproduce game consoles.
Answer the following statement(s) true (T) or false (F)
1. investors is corporations have unlimited liability for the company's debts 2. cooperatives can be organized to help consumers, provide services, or help producers 3. the dividends of stockholders in a corporation are subject to double taxation 4. the American Federation of Labor is an example of a professional association 5. preferred stock represents the nonvoting ownership of a corporation