Which of the following is an example of a two-part tariff?
A) price discrimination based on the buyers' willingness to pay
B) charging a hookup fee plus a monthly charge equal to marginal cost
C) higher sales tax on specific products
D) different prices based on the cost of production and quantity bought
E) A regulated firm uses marginal cost pricing for some customers and average cost pricing for other customers.
B
You might also like to view...
Which of the following is NOT a reason people tolerate tariffs and quotas?
A) Ignorance B) Their personal jobs depend on tariffs and quotas. C) Costs may be hidden and hard to quantify. D) Costs of the policy are spread over a large number of people. E) The marginal expenses to fight the protection outweigh the personal marginal costs of the protection.
According to the quantity theory of money currently used by monetarists, assuming velocity is constant (at a value of 5), a 10 percent increase in the money supply will raise
a. nominal GDP by 50 percent. b. real GDP by 10 percent. c. nominal GDP by 10 percent. d. real GDP by 50 percent.
A firm could lower prices and still increase revenue if
A. elasticity of demand is equal to zero. B. demand is elastic. C. elasticity of demand is equal to unity. D. demand is inelastic.
Answer the following statements true (T) or false (F)
1. The optimal quantity of a public good is where the total benefits from it are equal to the total costs of producing it. 2. If car makers are required to install gadgets to improve the cleanliness of car-exhaust, we would expect the equilibrium quantity in the car market to decrease. 3. If the lumber companies are required to internalize the negative externalities of deforestation, then we should expect the equilibrium price of wooden furniture to decrease. 4. The Coase Theorem suggests that the government does not have to be involved at all in resolving a market failure due to externalities.