Consider the following pricing strategies:
a. perfect price discrimination
b. charging different prices to different groups of customers
c. optimal two-part tariff
d. single-price monopoly pricing
Which of the pricing strategies allows a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing?
A) a, b, c, and d
B) a, b, and c only
C) a and b only
D) a and c only

Question

Consider the following pricing strategies: 
a. perfect price discrimination
b. charging different prices to different groups of customers
c. optimal two-part tariff
d. single-price monopoly pricing
Which of the pricing strategies allows a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing?
A) a, b, c, and d
B) a, b, and c only
C) a and b only
D) a and c only

Quizplus · Accepted Answer

Perfect price discrimination and optimal two-part tariff allow a producer to capture the entire consumer surplus, as they can charge each consumer their maximum willingness to pay or set a fixed fee plus a per-unit price.

Consider the Following Pricing Strategies