Which of the Following Statements Is True About Optimal Two-Part

question 209

Multiple Choice

Which of the following statements is true about optimal two-part tariff and perfect price discrimination for a given demand curve?

• A)The total revenue received under the two pricing schedules is the same.
• B)The total revenue received under an optimal two-part tariff exceeds that received under perfect price discrimination.
• C)The total revenue received under an optimal two-part tariff is less than that received under perfect price discrimination.
• D)The total revenue received under an optimal two-part tariff could be greater than, less than, or equal to that received under perfect price discrimination, depending on the fixed-fee portion of the two-part tariff.