Which of the following strategies are used by business firms to capture consumer surplus?

A) Price discrimination
B) Bundling
C) Two-part tariffs
D) all of the above

Question

Which of the following strategies are used by business firms to capture consumer surplus?A)  Price discriminationB)  BundlingC)  Two-part tariffsD)  all of the above

mahira mohammed · Accepted Answer

Final Answer : D, Explanation :  All three strategies (price discrimination, bundling, and two-part tariffs) are commonly used by business firms to capture consumer surplus. Price discrimination involves charging different prices for the same product or service based on the consumer's willingness to pay. This allows the business to capture the surplus that would otherwise go to the consumer. Bundling involves offering two or more products or services together at a discounted price, which encourages consumers to buy more than they otherwise would and generates additional revenue for the business. Two-part tariffs involve charging a fixed fee for access to a product or service, as well as a per-unit charge for usage. This allows the business to capture consumer surplus from consumers who are willing to pay more for usage.

Which of the following strategies are used by business firms to capture consumer surplus?

A) Price discrimination
B) Bundling
C) Two-part tariffs
D) all of the above

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