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 leads to the economically efficient output level?
A) a only
B) a and b only
C) a and c only
D) a, b, 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 leads to the economically efficient output level?
A) a only
B) a and b only
C) a and c only
D) a, b, and c only

Quizplus · Accepted Answer

Perfect price discrimination and optimal two-part tariff can lead to the economically efficient output level by capturing consumer surplus and allowing the firm to produce at the socially optimal quantity.

Consider the Following Pricing Strategies