Figure 16-5 -Refer to Figure 16-5.Suppose the Firm Represented in the Diagram

question 211

Multiple Choice

Figure 16-5

-Refer to Figure 16-5.Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price.(This is also called an optimal two-part tariff.) What is the quantity it should produce?

• A)240 units
• B)320 units
• C)480 units
• D)560 units

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Definitions:

Extrinsic Rewards

Rewards given to an individual that are external to the job itself, such as pay, bonuses, or other tangible benefits.

Self-Actualization Need

The desire for self-fulfillment and realizing one's own potential, as the highest level in Maslow's hierarchy of needs.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy from basic physiological needs to self-actualization.

Management Executive

A Management Executive is a senior-level position responsible for directing, controlling, and overseeing the operations and strategy of an organization or a specific department.