This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A firm has two customers with non-identical demands and a constant marginal cost of production. At ... (Read 49 times)

kaid0807

  • Hero Member
  • *****
  • Posts: 515
on: Jul 1, 2018
A firm has two customers with non-identical demands and a constant marginal cost of production. At any positive price, the consumer surplus values for the two customers are related as CS2  CS1 .
 
  What can we say about the optimal two-part tariff for the firm? A) The firm sets the price equal to MC and the optimal tariff is equal to CS2.
  B) The firm sets the price equal to MC and the optimal tariff is equal to CS1.
  C) The firm sets the price equal to MC and the optimal tariff is equal to zero.
  D) The optimal price is greater than MC and the optimal tariff is equal to CS1.

Question 2

Refer to Figure 9.4. If the government establishes a price floor of 40 and purchases the surplus, total consumer and producer surplus will be
 
  A) 15.
  B) 30 widgets.
  C) 1,050.
  D) 1,200.
  E) 1,350


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Melissahxx

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

E


kaid0807

  • Member
  • Posts: 515
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

shewald78

  • Member
  • Posts: 340
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

When the IQ scores of identical twins differ, behavior genetics researchers attribute these to ... When the IQ scores of identical twins differ, behavior genetics researchers attribute these to ...
Constant velocity versus positive velocity Constant velocity versus positive velocity
Cost Accounting 14 Cost Accounting 14
Structures of Voice Production Structures of Voice Production
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
Video: Oxygen transport - methods and oxyhemoglobin

For a complete list of videos, visit our video library