Refer to Figure 16 4 Suppose the firm represented in the diagram decides to use

Refer to figure 16 4 suppose the firm represented in

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110)Refer to Figure 16-4.Suppose the firm represented in the diagram decides to use a two-partpricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price.What is the profit earned under this pricing scheme? A) $5,760B) $6,400C) $7,680D) $7,870Answer: B110)Diff: 2Page Ref: 534-536/534-536Topic: Perfect Price DiscriminationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills 111)Refer to Figure 16-4.Suppose the firm represented in the diagram decides to use a two-partpricing strategy such that such that it charges a fixed fee and a per-unit price equal to thecompetitive price. (This is also called an optimal two-part tariff.) What is the quantity it shouldproduce? 111)Diff: 2Page Ref: 534-536/534-536Topic: Perfect Price DiscriminationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills 112)Refer to Figure 16-4.Suppose the firm represented in the diagram decides to use a two-partpricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price.(This is also called an optimal two-part tariff.) What is the per-unit price it should charge, if any? 112)Diff: 2Page Ref: 534-536/534-536Topic: Perfect Price DiscriminationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopolies AACSB: Analytic Skills 35

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