Consider Three Pricing Strategies That the Firm Can Pursue

question 53

Multiple Choice

Consider three pricing strategies that the firm can pursue:
a. optimal two-part tariff pricing
b. perfect price discrimination
c. single-price monopoly pricing
Of these three strategies, which method gives the firm the highest profit?

• A) optimal two-part tariff pricing
• B) perfect price discrimination
• C) single-price monopoly pricing
• D) The profit is the same under optimal two-part tariff pricing and perfect price discrimination and the profit is higher than under single-price monopoly pricing.