When perfect price discrimination comes in the form of a two-part tariff, one part of the "tariff" just covers marginal costs.
Answer the following statement true (T) or false (F)
True
Rationale: To implement perfect price discrimination with a two part tariff, the per-unit price would be set to MC -- thus covering all marginal costs. (The other part is set to be equal to the consumer surplus that the consumer would get if he were simply charged p=MC.)
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a. True b. False Indicate whether the statement is true or false
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What will be an ideal response?
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