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Question 1 According to the theory covered in class, an optimal two-part tariff pricing scheme includes: a. A lump-sum entry fee that captures the surplus consumers' would receive in its absence and under competitive conditions, and a price per unit equal to the marginal revenue. b. A lump-sum entry fee that captures the surplus consumers' would receive in its absence, and a price per unit equal to zero. c. A lump-sum entry fee that captures the surplus consumers' would receive in its absence and under competitive conditions, and a price per unit equal to the marginal cost. d. A lump-sum entry fee that captures the deadweight loss that would emerge in its absence, and a price per unit equal to the marginal revenue. Question 2 In an Edgeworth Box representing a classical pure exchange economy, a contract curve represents: a. Pareto-efficient outcomes b. Outcomes that can be improved according to Pareto's definition of efficiency c. All possible Pareto-improvements d. All possible Pareto-improvements

Question 1 According to the theory covered in class, an optimal two-part tariff pricing scheme includes: a. A lump-sum entry fee that captures the surplus consumers' would receive in its absence and under competitive conditions, and a price per unit equal to the marginal revenue. b. A lump-sum entry fee that captures the surplus consumers' would receive in its absence, and a price per unit equal to zero. c. A lump-sum entry fee that captures the surplus consumers' would receive in its absence and under competitive conditions, and a price per unit equal to the marginal cost. d. A lump-sum entry fee that captures the deadweight loss that would emerge in its absence, and a price per unit equal to the marginal revenue. Question 2 In an Edgeworth Box representing a classical pure exchange economy, a contract curve represents: a. Pareto-efficient outcomes b. Outcomes that can be improved according to Pareto's definition of efficiency c. All possible Pareto-improvements d. All possible Pareto-improvements

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 1 According to the theory covered in class, an optimal two-part tariff pricing scheme includes: a. A lump-sum entry fee that captures the surplus consumers' would receive in its absence and under competitive conditions, and a price per unit equal to the marginal revenue. b. A lump-sum entry fee that captures the surplus consumers' would receive in its absence, and a price per unit equal to zero. c. A lump-sum entry fee that captures the surplus consumers' would receive in its absence and under competitive conditions, and a price per unit equal to the marginal cost. d. A lump-sum entry fee that captures the deadweight loss that would emerge in its absence, and a price per unit equal to the marginal revenue. Question 2 In an Edgeworth Box representing a classical pure exchange economy, a contract curve represents: a. Pareto-efficient outcomes b. Outcomes that can be improved according to Pareto's definition of efficiency c. All possible Pareto-improvements d. All possible Pareto-improvements
Transcribed Image Text:Question 1 According to the theory covered in class, an optimal two-part tariff pricing scheme includes: a. A lump-sum entry fee that captures the surplus consumers' would receive in its absence and under competitive conditions, and a price per unit equal to the marginal revenue. b. A lump-sum entry fee that captures the surplus consumers' would receive in its absence, and a price per unit equal to zero. c. A lump-sum entry fee that captures the surplus consumers' would receive in its absence and under competitive conditions, and a price per unit equal to the marginal cost. d. A lump-sum entry fee that captures the deadweight loss that would emerge in its absence, and a price per unit equal to the marginal revenue. Question 2 In an Edgeworth Box representing a classical pure exchange economy, a contract curve represents: a. Pareto-efficient outcomes b. Outcomes that can be improved according to Pareto's definition of efficiency c. All possible Pareto-improvements d. All possible Pareto-improvements
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