In Two-Part Pricing

question 46

Multiple Choice

In two-part pricing

• A)consumers pay a lump-sum for all the goods purchased.
• B)the consumer must pay a lump sum if he buys more than a certain number of units of a good.
• C)a firm charges more for units purchased on the weekend than for those purchased during the week.
• D)the average price paid per unit is higher with a small number of units purchased than if a large number of units is purchased.

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Definitions:

Probability

Likelihood that a given outcome will occur.

Rules of Thumb

Simple, general principles or guidelines that are typically derived from practice rather than theory.

Efficiency Wage Theory

Suggests employers pay a higher wage than the market equilibrium to increase worker productivity and loyalty.

Worker Productivity

A measure of output per labor hour.