Figure 16-5 -Refer to Figure 16-5. Consider the Following Two Pricing Strategies

question 257

Multiple Choice

Figure 16-5
-Refer to Figure 16-5. Consider the following two pricing strategies:
a. a fixed fee and a per-unit price equal to the monopoly price
b. a fixed fee and a per-unit price equal to the competitive price
The firm represented in the diagram earns a higher profit under strategy ________ and deadweight loss is eliminated under ________.

• A) b; b
• B) a; b
• C) a; neither strategy
• D) b; neither strategy

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