Consider the Following Pricing Strategies

question 175

Multiple Choice

Consider the following pricing strategies:
a. perfect price discrimination
b. charging different prices to different groups of customers
c. optimal two-part tariff
d. single-price monopoly pricing
Which of the pricing strategies allows a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing?

• A) a, b, c, and d
• B) a, b, and c only
• C) a and b only
• D) a and c only

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Definitions:

Emission Reductions

The process or policy of reducing the amount of pollutants released into the atmosphere, typically to combat pollution and climate change.

Externality Compensation

Payments or remedies provided to offset the unintended negative or positive effects imposed on third parties by the production or consumption of goods and services.

Efficient Outcome

An allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.