Which of the following statements about two-part tariffs is false?
A) Because each individual has a different individual demand curve, if there is just one entrance fee some consumers will be able to reap some consumer surplus.
B) The producer cannot capture the entire consumer surplus because the entrance fee might discourage some potential consumers even though they would have been willing to pay a lesser entrance fee.
C) For two-part tariff pricing to be successful, the producer must be able to identify two distinct customer groups.
D) Two-part tariff pricing allows a producer to capture the entire consumer surplus.
C
You might also like to view...
Refer to Figure 26-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues no policy, then at point B
A) the unemployment rate is greater than the natural rate of unemployment. B) incomes and profits are falling. C) there is pressure on wages and prices to fall. D) firms are producing above capacity.
The most important feature of the Single European Act of 1986, which amended the founding Treaty of Rome, was dropping the requirement of
A) unanimous consent for measures related to market completion and making it a decision that only Germany and France agreed about. B) unanimous consent for measures related to market completion. C) majority consent for measures related to market completion and making it a decision that only Germany and France agreed about. D) unanimous consent for measures related to agricultural policies only. E) unanimous consent for measures related only to fiscal policies.
Assume a two-country, two-commodity, two-input model where the following relationships hold:(K/L)U.S. > (K/L)ROW (K/L)automobiles > (K/L)shoes(K/L)U.S. is the capital-labor ratio in the United States, (K/L)ROW is the capital-labor ratio in the Rest of the World, (K/L)automobiles indicates the capital-labor ratio in the production of automobiles, and (K/L)shoes indicates the capital-labor ratio in the production of shoes.Assume further that technology and tastes are the same in the United States and the Rest of the World. This information indicates that the United States
A. is a relatively land-abundant country. B. is a relatively capital-abundant country. C. has a scarcity of land. D. is a relatively capital-scarce country.
For monetary policy to be effective in changing planned investment spending, _____
Fill in the blank(s) with the appropriate word(s).