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A rm setting a two-part tariff with only one customer should set the entry fee equal to O a. average cost 0 b. producer surplus
A rm setting a two-part tariff with only one customer should set the entry fee equal to O a. average cost 0 b. producer surplus O c. consumer surplus Q d. price 0 e. marginal cost A firm sells an identical product to two groups of consumers, A and B. The firm has decided that third-degree price discrimination is feasible and wishes to set prices that maximize profits. Which of the following best describes the price and output strategy that will maximize profits? O a. PA = PB = MC O b. MRA = MRB = MC O c. PA = PB > MC O d. (MRA-MRB)=(1-MC) O e. MRA = MRB > MC
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