Two-part pricing offers a mechanism whereby the firm can A) ...

[james]

Two-part pricing offers a mechanism whereby the firm can
 
  A) charge two different prices to distinct groups of customers.
  B) collect two times as much from consumers as a single-price monopoly can.
  C) capture some or all of the consumer surplus.
  D) reduce some of its fixed costs.

Question 2

A single-period duopoly firm can choose output level A or B. The firm decides it will produce level A regardless of what the other firm produces. This decision may occur because
 
  A) producing the output level A is a dominant strategy.
  B) this firm has simply decided to always produce at level A.
  C) Both A and B are possible.
  D) None of the above.

[sarajane1989]

Answer to Question 1

C

Answer to Question 2

C