
Figure 16-5
-Refer to Figure 16-5.Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price.(This is also called an optimal two-part tariff.) What is the per-unit price it should charge, if any?
A) It should not charge a price per unit; just a flat fee to consume as much of the product as desired.
B) It should charge a range of prices from $40 to $12.
C) $12
D) $16
Correct Answer:
Verified
Q180: Book publishers use price discrimination routinely, but
Q181: Figure 16-5 Q182: All of the following are disadvantages of Q183: Compared to monopoly pricing, an optimal two-part Q184: Which of the following describes two-part tariff Q186: Cost-plus pricing is a reasonable way to Q187: Figure 16-5 Q188: With an optimal two-part tariff Q189: Figure 16-5 Q190: If marginal cost is zero, with an 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
A)consumer surplus equals