ECONOMICS OLYMPIAD NOTES

TVC initially increases at a decreasing rate then increases at an increasing rate.

Average Revenue = Total Revenue/ Quantity

PEMDAS is a standard rule for arithmetic operation that stands for Parentheses,

Exponents, Multiplication & Division, Addition, Subtraction.

Price Discrimination. A two-part tariff (TPT) is a form of price discrimination wherein the price

of a product or service is composed of two parts - a lump-sum fee as well as a per-unit charge. In

general, such a pricing technique only occurs in partially or fully monopolistic markets, but can

also exist in competitive markets.

The concept of price discrimination is designed to enable the firm to capture more

consumer surplus than it otherwise would in a non-discriminating pricing environment.

The consumer surplus is captured totally from the entrance fees and hence keeping the per

unit price low attracts the consumers.