Author Question: Two-part pricing offers a mechanism whereby the firm can A) charge two different prices to ... (Read 31 times)

james

  • Hero Member
  • *****
  • Posts: 573
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

  • Sr. Member
  • ****
  • Posts: 296
Answer to Question 1

C

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

For a complete list of videos, visit our video library