Figure 16-4 -Refer to Figure 16-4.Suppose the Firm Represented in the Diagram

question 48

Multiple Choice

Figure 16-4
-Refer to Figure 16-4.Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price.(This is also called an optimal two-part tariff.) What is the value of the consumer surplus from this pricing strategy?

• A) $2,560
• B) $5,760
• C) $7,870
• D) 0

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Definitions:

Employee Share Purchase Plans

Programs that allow employees to purchase company shares often at a discounted price, as part of their benefits package.

Market Value

The current price at which an asset or service can be bought or sold in an open market.

Direct Payment

The monetary compensation paid directly to employees in the form of wages, salaries, commissions, and bonuses.

Goal-Sharing Plans

Incentive plans that reward employees for reaching specific organizational goals, similar to gain-sharing but often broader in scope.