A Firm Setting a Two-Part Tariff with Only One Customer

question 42

Multiple Choice

A firm setting a two-part tariff with only one customer should set the entry fee equal to:

• A) marginal cost.
• B) consumer surplus.
• C) marginal revenue.
• D) price.

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Definitions:

Interrupt

To stop a continuous process or activity, usually temporarily, by causing a disruption or intervention.

Opinions

Statements or beliefs about something, not necessarily based on facts or knowledge.

Puberty

The period during which adolescents reach sexual maturity and become capable of reproduction.

Menarche

The initial instance of menstrual flow in a female, signifying the beginning of fertility.