If a Firm Is to Capture All Consumer Surplus with Two-Part

question 94

Multiple Choice

If a firm is to capture all consumer surplus with two-part pricing when customers are different,

• A)it must be able to charge different access fees.
• B)it cannot charge different prices for access fees.
• C)it must set unit price below marginal cost.
• D)it must set unit price above marginal cost.

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Definitions:

Secondary Liability

A legal responsibility whereby one party is held liable for the actions of a third party, typically in copyright or partnership cases.

Unauthorized Signature

An unauthorized signature is a signature made without the express permission of the person whose name is signed, often considered fraudulent or voidable.

Negligence

A legal concept where an individual fails to exercise a reasonable level of care, resulting in harm or damage to another person.

Principal

In law, a principal can refer to a party who grants authority to an agent to act in their stead; in finance, it can refer to the original amount of money invested or loaned, before any interest.