If a Firm Is to Capture All Consumer Surplus with Two-Part

question 94

Multiple Choice

If a firm is to capture all consumer surplus with two-part pricing when customers are different,

• A)it must be able to charge different access fees.
• B)it cannot charge different prices for access fees.
• C)it must set unit price below marginal cost.
• D)it must set unit price above marginal cost.

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Definitions:

Paralegal

A person trained in legal matters who assists lawyers in their work but is not a qualified attorney.

Mediator

A neutral third party who assists disputing parties in resolving conflicts through communication and negotiation techniques, without providing legal judgment.

Collaborative Law

A legal process enabling couples who have decided to separate or end their marriage to work with their lawyers and, on occasion, other family professionals to avoid the uncertain outcome of court and to achieve a settlement that best meets the specific needs of both parties and their children without the underlying threat of litigation.

Trial Court

The level of court in which a legal dispute is first heard and evidence is presented, as opposed to appellate courts.