If Big Box Store has customers with identical demands, if it practices two- part pricing, the profit- maximizing access fee is ______the consumer surplus.
A)equal to
B)greater than
C)less than
D)exactly double

Question

Quizplus · Accepted Answer

In a two-part pricing strategy, the profit-maximizing access fee is set equal to the consumer surplus to capture the maximum willingness to pay of the consumers, thus maximizing profits.

If Big Box Store Has Customers with Identical Demands, If