Consider the Following Pricing Strategies

question 28

Multiple Choice

Consider the following pricing strategies:
A.perfect price discrimination
B.charging different prices to different groups of customers
C.optimal two-part tariff
D.single-price monopoly pricing
Which of the pricing strategies allows a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing?

• A)a, b, c, and d
• B)a, b, and c only
• C)a and b only
• D)a and c only

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Definitions:

Corporate Entities

Organizations or companies recognized by law as a single entity, separate from its owners, with its own rights, responsibilities, and liabilities.

Oligopolies

Giant corporations that control part of an economy. They are few and tend not to compete against one another. Instead, they can set prices at levels that are most profitable for them.

Dominate an Industry

To be the most influential or powerful entity within a particular market or sector, often through superior products, market share, or innovative strategies.

Multinational Corporations

Large corporations that operate and provide goods or services in multiple countries, often having significant economic, political, and cultural influence.