Author Question: A firm setting a two-part tariff with only one customer should set the entry fee equal to A) ... (Read 31 times)

cabate · **on:** Jul 1, 2018

A firm setting a two-part tariff with only one customer should set the entry fee equal to

A) marginal cost.
B) consumer surplus.
C) marginal revenue.
D) price.

Question 2

The market supply curve for music downloads is Q = 135(P-1 ) where Q is millions of downloads and P is the price in dollars per track.

If the current price is 1.20 per download, what is the change in producer surplus if the price increases by 0.20 per track?
A) 5.4 million
B) 8.1 million
C) 10.8 million
D) 27 million