Which of the following describes two-part tariff pricing?
A)A firm charges two different prices for the same good.
B)An importer has to pay a tax at the nation's borders, and a sales tax when the good is sold.
C)A buyer pays an initial price for entrance to the market and an additional fee for each unit of the product purchased.
D)A buyer must pay a down payment and monthly payments to buy big-ticket items such as a car, a plasma television, or a suite of furniture.

Question

Quizplus · Accepted Answer

Two-part tariff pricing involves charging customers an initial fee for entering the market and a per-unit fee for each additional unit purchased. This is commonly used in situations like software licensing or healthcare, where the provider charges an upfront fee for access and an additional fee for each time the service is used or a product is consumed.

Which of the Following Describes Two-Part Tariff Pricing