A Profit-Maximizing Monopolist Employing a Two-Part Tariff on Consumers Having

Multiple Choice

A profit-maximizing monopolist employing a two-part tariff on consumers having different demands,_____.

A) should simply set price to maximize total revenue
B) should charge a single price,with no entry fee,like a regular monopolist
C) should set price equal to average cost plus a constant profit margin
D) does not have a clearly defined profit-maximizing pricing scheme