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.

---

Definitions:

John Adams

John Adams was the second President of the United States (1797–1801), a founding father, and a major figure in the American Revolution, known for his advocacy of independence from Great Britain.

Dutch

Refers to anything related to the Netherlands, its people, culture, or language.

Loyalists

Individuals who remained loyal to the British Crown during the American Revolutionary War, often opposing independence for the American colonies.

Social Structure

The organized pattern of social relationships and social institutions that together compose society.