Which of the following statements is true about optimal two -part tariff and perfect price discrimination for a given demand curve?
A) The total revenue received under the two pricing schedules is the same.
B) The total revenue received under an optimal two -part tariff could be greater than, less than or equal to that received under perfect price discrimination, depending on the fixed -fee portion of the two -part tariff.
C) The total revenue received under an optimal two -part tariff exceeds that received under perfect price discrimination.
D) The total revenue received under an optimal two -part tariff is less than that received under perfect price discrimination.
Correct Answer:
Verified
Q24: Suppose Masqat Cement Company charges the same
Q25: A pharmaceutical company manufactures an arthritis drug
Q26: Suppose a firm knows that potential customers
Q27: The price elasticity of demand for shampoo
Q28: Car rental companies use yield management when
Q29: All of the following are disadvantages of
Q30: The ability of Dream Park to charge
Q31: A firm using a two -part tariff
Q33: The Egyptian and Jordanian governments charge a
Q34: When the Egyptian and Jordanian governments engage
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents