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    Exam 10: Pricing With Market Power
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    In Two-Part Pricing with Identical Consumers, a Firm
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In Two-Part Pricing with Identical Consumers, a Firm

Question 7

Question 7

Multiple Choice

In two-part pricing with identical consumers, a firm


A) charges a lump-sum fee equal to the consumer surplus.
B) sets unit price below marginal cost.
C) should go with single-price monopoly pricing to maximize profits.
D) Both A and B.

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