Which of the following describes two part tariff pricing A An importer has to

Which of the following describes two part tariff

  • New York University
  • AND 400
  • Test Prep
  • zhangyu132
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101) Which of the following describes two-part tariff pricing?A) An importer has to pay a tax at the nationʹs borders, and a sales tax when the good is sold.B) A buyer pays an initial price for entrance to the market and an additional fee for each unit ofthe product purchased.C) A firm charges two different prices for the same good.D) A buyer must pay a down payment and monthly payments to buy big-ticket items such as acar, a plasma television or a suite of furniture.Answer: B101)Diff: 2Page Ref: 534/534Topic: Two-Part TariffLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking32
102) Compared to monopoly pricing, an optimal two-part tariff102)Diff: 2Page Ref: 534-536/534-536Topic: Two-Part TariffLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking103) A firm using a two-part tariff faces a tradeoff because103)Diff: 2Page Ref: 534-536/534-536Topic: Two-Part TariffLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking104) A firm using a two-part tariff can produce the economically efficient outcome byDiff: 2Page Ref: 534-536/534-536Topic: Two-Part TariffLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking105) With an optimal two-part tariff,A) consumers maximize consumer surplus.B) all consumer surplus is transformed into profit.C) the firm earns zero profit.D) consumer surplus equals producer surplus.Answer: B105)Diff: 2Page Ref: 534-536/534-536Topic: Two-Part TariffLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking33

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