A Firm Using a Two-Part Tariff Faces a Tradeoff Because

question 79

Multiple Choice

A firm using a two-part tariff faces a tradeoff because

• A)the only way to increase the fixed-fee portion of the price is to lower the per-unit portion of the price.
• B)the only way to increase total revenue is to lower per-unit profit.
• C)any increase in consumer surplus must be offset by a decrease in producer surplus.
• D)the smaller the variation between the parts of the price, the greater the deadweight loss generated by the pricing scheme.

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Definitions:

X Chromosome

One of the two sex chromosomes, the X chromosome plays a crucial role in determining genetic traits and can be found in both males (XY) and females (XX).

Autosomal

Relating to any chromosome that is not a sex chromosome; autosomes are numbered from 1 to 22 in humans.

Dizygotic Twins

Also known as fraternal twins, are siblings born at the same time who have developed from two different eggs fertilized by two different sperm, sharing about 50% of their DNA.

Monozygotic Twins

Monozygotic twins are twins that originate from a single fertilized egg, thus sharing identical genetic material and typically having very similar appearances and physical traits.