In two-part pricing A) consumers pay a lump-sum for all the ...

[go.lag]

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.

[lkoler]

Answer to Question 1

D

Answer to Question 2

C