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Figure 16-4 -Refer to Figure 16-4.Consider the Following Two Pricing Strategies

Question 124

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Figure 16-4 Figure 16-4   -Refer to Figure 16-4.Consider the following two pricing strategies:  a.a fixed fee and a per-unit price equal to the monopoly price B.a fixed fee and a per-unit price equal to the competitive price The firm represented in the diagram earns a higher profit under strategy ________ and deadweight loss is eliminated under ________. A)  b; b B)  a; b C)  a; neither strategy D)  b; neither strategy
-Refer to Figure 16-4.Consider the following two pricing strategies:
a.a fixed fee and a per-unit price equal to the monopoly price
B.a fixed fee and a per-unit price equal to the competitive price
The firm represented in the diagram earns a higher profit under strategy ________ and deadweight loss is eliminated under ________.


A) b; b
B) a; b
C) a; neither strategy
D) b; neither strategy

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