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:

Narcissism

A personality trait characterized by an inflated sense of self-importance, a need for excessive attention and admiration, and a lack of empathy for others.

Distraction

The process of diverting attention away from the intended object of focus towards something else, often leading to a decrease in performance or comprehension.

Deindividuation

A tendency to lose one’s sense of individuality when in a group or crowd.

High Cognitive Load

A situation where the task at hand requires a significant amount of mental effort and working memory, potentially affecting performance and decision-making.