Consider Three Pricing Strategies That the Firm Can Pursue

question 128

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 method gives the firm the highest profit?

• A)optimal two-part tariff pricing
• B)perfect price discrimination
• C)single-price monopoly pricing
• D)The profit is the same under optimal two-part tariff pricing and perfect price discrimination, and the profit is higher than under single-price monopoly pricing.

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Definitions:

Consumer Behavior

The examination of how individuals, groups, or organizations choose, acquire, consume, and discard products, services, experiences, or concepts to fulfill their needs, and how these actions affect both the consumer and the broader community.

Traditional Market System

An economic system where trade and economic activities are based on customs, history, and time-honored beliefs.

Marginal Utility

A concept in economics that represents the additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Budget Allocation

The process of distributing available financial resources among different departments, projects, or sectors within an organization or government.