Which of the following is FALSE with regards to two-part tariffs? You can select more than one. An example of a "use fee" of a two-part tariff is a membership fee at a golf club. The entry fee of a two-part tariff is designed to extract consumer surplus. The use fee of a two-part tariff is designed to cover fixed costs of the firm. We can implement a second degree price discrimination strategy using a two part tariff. Two part tariff consists of an "entry fee" plus a "use fee" that must be paid for each unit of the product.

Which of the following is FALSE with regards to two-part tariffs? You can select more than one. An example of a "use fee" of a two-part tariff is a membership fee at a golf club. The entry fee of a two-part tariff is designed to extract consumer surplus. The use fee of a two-part tariff is designed to cover fixed costs of the firm. We can implement a second degree price discrimination strategy using a two part tariff. Two part tariff consists of an "entry fee" plus a "use fee" that must be paid for each unit of the product.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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