If a Firm Is Practicing Two- Part Pricing and It

question 47

Multiple Choice

If a firm is practicing two- part pricing and it is ______charging a user fee that is its marginal cost, it has customers with_______ demands.

• A)greater than; nonidentical
• B)greater than; identical
• C)less than; nonidentical
• D)less than; identical

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Definitions:

Expected Rate

Anticipated return on an investment, often based on historical data or the inherent risk of the investment.

Dollar-weighted Return

This type of return measures the performance of an investment, taking into account the timing and magnitude of inflows and outflows of money.

Time Period

The duration or length of time for which an investment, project, data collection, or any specified activity lasts.

VaR

Value at Risk, a statistical measure used to assess the level of financial risk within a firm, portfolio, or position over a specific time frame.