Multiple Choice
Which of the following statements is true about optimal two-part tariff and perfect price discrimination for a given demand curve?
A) The total revenue received under the two pricing schedules is the same.
B) The total revenue received under an optimal two-part tariff exceeds that received under perfect price discrimination.
C) The total revenue received under an optimal two-part tariff is less than that received under perfect price discrimination.
D) The total revenue received under an optimal two-part tariff could be greater than, less than, or equal to that received under perfect price discrimination, depending on the fixed-fee portion of the two-part tariff.
Correct Answer:
Verified
Correct Answer:
Verified
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