Q 114

Figure 16-4 img -Refer to Figure 16-4.Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price.(This is also called an optimal two-part tariff.)What is the value of the consumer surplus from this pricing strategy? A) $2,560 B) $5,760 C) $7,870 D) 0

Multiple Choice