If a firm is to capture all consumer surplus with two-part pricing when customers are different
A) it must be able to charge different access fees.
B) it cannot charge different prices for access fees.
C) it must set unit price below marginal cost.
D) it must set unit price above marginal cost.
A
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Supply can shift due to changes in price.
Answer the following statement true (T) or false (F)
Refer to the scenario above. Which of the following is the optimum choice?
A) Apartment Very Close B) Apartment Close C) Apartment Far D) Apartment Very Far
The layoff of workers in virtually all industries during the 1982 recession is an example of the classification of workers as
A) voluntarily unemployed. B) structurally unemployed. C) cyclically unemployed. D) frictionally unemployed.
The usefulness of the price-taker model requires that the firm's decision makers
a. act to maximize their total revenue and fully understand marginal costs and marginal revenues. b. be able to draw accurate marginal cost and marginal revenue curves. c. place the social interest of the economy above their individual self interests. d. seek to maximize the profits of the firm.