Consider a market with homogeneous consumers. Compare a monopolist who is charging a uniform price with a monopolist who is using two-part tariff. In which case the mo- nopolist’s profit is higher? What about the social welfare (sum of the consumers’ surplus and the monopolist’s profit)

Economics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter24: Price-searcher Markets With High Entry Barriers
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Consider a market with homogeneous consumers. Compare a monopolist who is charging a uniform price with a monopolist who is using two-part tariff. In which case the mo- nopolist’s profit is higher? What about the social welfare (sum of the consumers’ surplus and the monopolist’s profit)?

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