If Marginal Cost Is Zero, with an Optimal Two-Part Tariff

question 144

Multiple Choice

If marginal cost is zero, with an optimal two-part tariff

• A)total revenue is maximized.
• B)consumers maximize their surplus
• C)the firm does not have to charge a fixed-fee portion.
• D)firms may not maximize profit.

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Definitions:

Motor Coordination

The ability to execute smooth, accurate, and controlled motor responses, often involving the synchronization of movement and sensory feedback.

Addiction

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Depressant

A substance that reduces arousal or stimulation in various areas of the brain, often used to treat anxiety and sleep disorders.

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