The Pricing of Utilities Such as Gas and Electricity as Two-Part

question 46

True/False

The pricing of utilities such as gas and electricity as two-part tariffs is an example of first-degree price discrimination.

---

Definitions:

Voluntary Marketing Exchange

Transactions where both the buyer and seller willingly engage in the trade of goods or services, each expecting to benefit from the exchange.

Product

Any item or service offered by a firm that meets a need or desire of consumers.

Private-Label Brands

Brands developed and marketed by a retailer and available only from that retailer; also called store brands.

Big-Box Stores

Large retail establishments that offer a wide variety of merchandise under one roof, typically at lower prices.