Author Question: Refer to Figure 16-6. Sensei's friend, Marcel, suggests that he charge a one-time membership fee to ... (Read 59 times)

jho37 · **on:** Jun 29, 2018

Refer to Figure 16-6. Sensei's friend, Marcel, suggests that he charge a one-time membership fee to use the martial arts school, in addition to a per-class charge.

Suppose Sensei charges the monopoly price for each class and also imposes a one-time membership fee. What is the maximum amount of revenue from the membership fee he can collect from all his customers?
A) an amount equal to the area A + B B) an amount equal to the area H + G
C) an amount equal to the area E + F D) an amount equal to the area A + C + H

Question 2

Refer to Figure 17-6. Which of the following statements about Scheme II is false?

A) It is likely to draw highly productive workers who see the opportunity to increase their wages.
B) It allows workers to increase their monthly wage without penalizing those who are content with their monthly wage.
C) It is more risky for senior employees.
D) It could discourage less productive workers and induce them to leave the firm.