All of the Following Practices Increase a Firm's Profit by Extracting

question 27

Multiple Choice

All of the following practices increase a firm's profit by extracting more consumer surplus than can be obtained by simple monopoly pricing except which one?

• A)linear pricing
• B)all- or- nothing offers
• C)two- part pricing
• D)commodity bundling

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Definitions:

Fiduciary Duty

An obligation to act in the best interest of another party, for instance, the duty a trustee has towards the beneficiaries of the trust.

Indorsee

The person to whom a negotiable instrument (like a check or promissory note) is endorsed or transferred.

Indorser

A person who signs a negotiable instrument, such as a check, over to another party, transferring ownership.

Qualified Indorsement

An endorsement on a negotiable instrument that limits the liability of the indorser or specifies conditions for the payment.