If Big Box Store has customers with identical demands, if it practices two- part pricing, the profit- maximizing user fee is______ the marginal cost of Big Box Store's product.
A)equal to
B)less than
C)exactly double
D)greater than

Question

Quizplus · Accepted Answer

In two-part pricing, the profit-maximizing user fee is set equal to the marginal cost to ensure efficient consumption levels.

If Big Box Store Has Customers with Identical Demands, If