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:

Mood Disorders

A category of psychiatric disorders characterized by a disturbance in an individual's mood, which can include depression and bipolar disorder.

Stressful Life

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Enduring characteristics of an individual's behavior, thought, and emotion that show a consistent pattern over time.

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An intimate and affectionate connection between two individuals, often marked by expressions of love and commitment.