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:

Pillow Basalts

Formations typically found underwater, created when lava cools rapidly, forming a distinctive pillow-shaped structure.

Basaltic Lava

A type of lava that is low in silica content, highly fluid, and originates from the partial melting of the upper mantle.

Lava Fountains

Explosive volcanic eruptions that eject lava high into the air in a spectacular display, often from a single vent or fissure.

Pahoehoe Lava

A type of basaltic lava flow with a smooth, unbroken surface that resembles ropey or wrinkled skin, flowing more fluidly than other types.