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Consider a firm that is engaging in two-part pricing with a single consumer (or with a set of consumers who all have the same demand).
Consider a firm that is engaging in two-part pricing with a single consumer (or with a set of consumers who all have the same demand). The two part price includes (i) a price/unit and (ii) a (fixed) entry fee. What is the strategy in setting the (fixed) entry fee? a the fixed entry fee should be equal to the price per unit. b the fixed entry fee should be equal to the consumer surplus c the fixed entry fee should be equal to the producer surplus d the fixed entry fee should be equal to the producer surplus minus the fixed costs
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