question archive What price does a monopoly charge when it perfectly implements a two-part tariff? A
What price does a monopoly charge when it perfectly implements a two-part tariff? A
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What price does a monopoly charge when it perfectly implements a two-part tariff?
A. The simple monopoly price.
B. The competitive price.
C. A price higher than that charged by a simple monopoly.
D. A price between the monopoly and competitive prices.
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A monopoly charged a competitive price when it perfectly implements a two-part tariff. The said the two-part tariff is an example of price discrimination technique. So, Option B is the correct answer.
