With two-part pricing
Select one:
A. consumers are required to buy two units of a good.
B. the consumer is limited in the number of units that can be purchased.
C. the average price paid varies with the number of units purchased.
D. the consumer puts down a deposit and then pays the rest when she picks up the goods purchased.
Which of the following sellers is most able to perfectly price discriminate?
Select one:
A. the post office
B. a clothing store
C. a grocery supermarket
D. a college or university
3.Consumers are better off with pricing in the following order: 1)________; 2)________; 3)________.
Select one:
A. competitive market; single-price monopoly; perfect price discrimination
B. single-price monopoly; competitive market; perfect price discrimination
C. competitive market; perfect price discrimination; single-price monopoly
D. Unable to determine.
4.Group price discrimination has ________ consumer surplus than under ________.
Select one:
A. more; an elastic demand curve
B. less; single-price monopoly
C. less; perfect competition
D. more; perfect competition
6. If a firm is to capture all consumer surplus with two-part pricing when customers are different
Select one:
A. it must be able to charge different access fees.
B. it must set unit price below marginal cost.
C. it must set unit price above marginal cost.
D. it cannot charge different prices for access fees.
7. All firms can increase profits using price discrimination.
Select one:
A. true, because firms can sell different versions of a product that is just right for an individual consumer
B. true, because market demand curves are downward sloping
C. false, because consumers aren't forced to buy a producer's products
D. false, because some firms are in competitive markets
8.
For a perfect-price-discriminating monopoly, the marginal revenue curve
Select one:
A. varies for each consumer.
B. is the demand curve.
C. is the same as the monopolist's marginal revenue curve.
D. lies below the demand curve.
A good example of perfect price discrimination is
9. Select one:
A. buying a concert ticket on the street corner.
B. selling concert tickets to individuals on the street corner.
C. buying concert tickets at the ticket window.
D. selling concert tickets at the ticket window.
10. Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. The profit-maximizing two-part tariff yields total revenue of
Select one:
A. $32.
B. $40.
C. $24.
D. $16.
