Consider Three Pricing Strategies That the Firm Can Pursue

question 217

Multiple Choice

Consider three pricing strategies that the firm can pursue:
A.optimal two-part tariff pricing
B.perfect price discrimination
C.single-price monopoly pricing
Of these three strategies, which is most beneficial to society as a whole?

• A)Both perfect price discrimination and a two-part tariff pricing are equally beneficial in that the marginal benefit of the last unit sold equals the marginal cost of producing that unit.
• B)only perfect price discrimination because this pricing method eliminates deadweight loss
• C)single-price monopoly pricing because consumers enjoy at least some consumer surplus
• D)only two-part tariff pricing because the per-unit portion of the price is set equal to marginal cost

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Definitions:

Age Discrimination

The unfair treatment of individuals based on their age, particularly in employment practices.

Mental Exhaustion

A state of extreme mental fatigue caused by prolonged cognitive activity, often resulting in reduced productivity and motivation.

Job Stress

The harmful physical and emotional responses that occur when the requirements of a job do not match the capabilities, resources, or needs of the worker.

Reduced Feelings Of Control

An emotional state where an individual perceives they have less influence or management over their environment and outcomes.