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.

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Definitions:

Intentionally Misleading

Deliberately providing false or deceptive information.

Intentional Misrepresentation

is the act of knowingly providing false information with the intent to deceive or mislead another party, often resulting in legal consequences.

Rescission

The act of revoking, canceling, or annulling a contract, returning the parties to their positions prior to the contract's execution.

Damages

A monetary compensation awarded by a court to indemnify someone who has suffered loss or injury due to the unlawful act or negligence of another.