A firm using a two-part tariff faces a tradeoff becauseGroup of answer choicesthe only way to increase the fixed-fee portion of the price isto lower the per-unit portion of the price.the only way to increase total revenue is to lower per-unitprofit.any increase in consumer surplus must be offset by a decrease inproducer surplus.the smaller the variation between the parts of the price, thegreater the deadweight loss generated by the pricing scheme.
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