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 exceeds that received under perfect price discrimination.
C) The total revenue received under an optimal two-part tariff is less than that received under perfect price discrimination.
D) 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.
Correct Answer:
Verified
Q205: Figure 16-5 Q206: Consider three pricing strategies that the firm Q207: Figure 16-5 Q208: Odd pricing became common in the late Q209: Figure 16-5 Q211: Which of the following statements is true? Q212: Consider three pricing strategies that the firm Q213: If, at the firm's projected sales level, Q214: Many firms use odd pricing-charging prices such Q215: Figure 16-5 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
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