In two-part pricing
A) consumers pay a lump-sum for all the goods purchased.
B) the consumer must pay a lump sum if he buys more than a certain number of units of a good.
C) a firm charges more for units purchased on the weekend than for those purchased during the week.
D) the average price paid per unit is higher with a small number of units purchased than if a large number of units is purchased.
Question 2
A main rationale for government intervention in markets ________ and ________.
A) is to reduce producer surplus; redistribute wealth
B) concerns the creation of public goods; reduces free-riding
C) is to correct market failures; increase surplus
D) There is never an economic rationale for government intervention.
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