The Two- Part Tariff Is an Efficient Pricing Solution Because

question 64

Multiple Choice

The two- part tariff is an efficient pricing solution because:

• A)is applied to homogenous consumers.
• B)trendy night clubs use it.
• C)the product is sold at marginal cost.
• D)it extracts the maximum consumer surplus.

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Definitions:

Noncorporate Business

An enterprise that operates for profit but is not legally incorporated; examples include sole proprietorships and partnerships.

Limited Partnership

A business organization with one or more general partners who manage the business and assume legal debts and obligations, and one or more limited partners who are liable only to the extent of their investments.

Dissolved

The process of legally terminating the existence of an entity, such as a corporation or partnership, according to the laws of the jurisdiction in which it is registered.

Capital Contribution

Money, assets, or other resources a partner or shareholder provides to a company or partnership to increase its capital.