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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