Quiz_168 - 121 RefertoFigure16-2. -time membershipfee- A theareaE F B theareaA B C D E F G H C theareaH G F D theareaA B C D E 121 Answer B

Quiz_168 - 121 RefertoFigure16-2. -time membershipfee- A...

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121)Refer to Figure 16-2.With this pricing scheme-a competitive price for the classes and a one-timemembership fee-what amount of producer surplus will Sensei earn?A) the areaE+F.B) the areaA+B+C+D+E+F+G+HC) the areaH+G+F.D) the areaA+B+C+D+E.121)Answer: BDiff: 2Page Ref: 534-536/534-536Topic: Two-Part TariffLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic SkillsFigure 16-3The Lizard Lounge is well known for its exotic cocktails. Figure 16-3 shows its estimated demand curve for cocktails.122)Refer to Figure 16-3.The owners of the Lizard Lounge are considering the following four pricingoptions:a.A single price scheme where the price of cocktails equals the monopoly price.b.A single price scheme where the cocktail price equals the competitive price.c.A two-part tariff: a monopoly price for cocktails and a cover charge that will generate totalrevenue equal to the areaX.d.A two-part tariff: a competitive price for cocktails and a cover charge that will generate totalrevenue equal to the areaX+Y+Z.Which scheme will earn the largest profit?122)Diff: 3Page Ref: 534-536/534-536Topic: Two-Part TariffLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills37
123)Refer to Figure 16-3.The owners of the Lizard Lounge are considering the following four pricingoptions:a.A single price scheme where the cocktail price equals the monopoly price.b.A single price scheme where the cocktail price equals the competitive price.c.A two-part tariff: a monopoly price for cocktails and a cover charge that will generate totalrevenue equal to the areaX.d.A two-part tariff: a competitive price for cocktails and a cover charge that will generate totalrevenue equal to the areaX+Y+Z.

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