Consider a Profit-Maximizing Monopolist Whose Consumers Have Identical Demand Curves

Multiple Choice

Consider a profit-maximizing monopolist whose consumers have identical demand curves.Which of the following will be true if the firm employs a two-part tariff pricing strategy for these consumers?

A) The firm will produce less output compared to a firm that is not using this pricing strategy.
B) The firm will capture the entire consumer surplus.
C) The firm will charge a tariff that also maximizes revenues.
D) The firm will charge consumers a different entry fee,but a constant per-unit price.