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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 36
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f8fc764-4955-4179-ab0d-826bebcb9f4e%2F1e371252-cee7-46f4-92b8-d9491de11400%2Fi0t5ik_processed.png&w=3840&q=75)
Transcribed Image Text:Question 36
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.
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