Consider a discount retailer such as Costco which uses a two part tariff

Consider a discount retailer such as costco which

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113) Consider a discount retailer such as Costco which uses a two-part tariff pricing strategy. TheCostco membership feeA) is a resalable asset to the producer.B) is a resalable asset to the consumer.C) buys the consumer the right to make future purchases at Costco.D) is used by Costco to cover its fixed costs of production.Answer: C113)Diff: 1Page Ref: 534-536/534-536Topic: Two-Part TariffLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking34
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Figure 16-2Watanabe Sensei operates the only martial arts school in Hartfield. For simplicity, assume that consumers have identicaldemand curves and that Sensei knows what this demand curve is. Figure 16-2 shows this demand curve.114)Refer to Figure 16-2.If Sensei acts as a monopolist, his profit-maximizing price is ________ and thenumber of classes sold is ________.114)Diff: 1Page Ref: 534-536/534-536Topic: Pricing StrategyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills115)Refer to Figure 16-2.If Sensei acts as a monopolist and charges the profit-maximizing price, whatis the consumer surplus received by his customers?115)Diff: 1Page Ref: 534-536/534-536Topic: Pricing StrategyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills116)Refer to Figure 16-2.If Sensei acts as a monopolist and charges the profit-maximizing price, whatis his producer surplus?116)Diff: 1Page Ref: 534-536/534-536Topic: Pricing StrategyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills35
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