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If Marginal Cost Is Zero, with an Optimal Two-Part Tariff

Question 190

Multiple Choice
If marginal cost is zero, with an optimal two-part tariff A)total revenue is maximized. B)consumers maximize their surplus C)the firm does not have to charge a fixed-fee portion. D)firms may not maximize profit.

If marginal cost is zero, with an optimal two-part tariff


A) total revenue is maximized.
B) consumers maximize their surplus
C) the firm does not have to charge a fixed-fee portion.
D) firms may not maximize profit.

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