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.

---

Definitions:

Inquiry Message

A communication seeking information or clarification on a particular subject or issue.

Discriminatory Topics

Subjects or discussions that involve unfair treatment of individuals based on race, gender, age, or other characteristics.

Interviewer Questions

Queries posed by the interviewer during an interview intended to gather information or assess the interviewee.

Respond

To provide an answer or reaction to a question or action either verbally or through written communication.