Tickets to the Combined Amusement Park and Water Slide Were

question 154

Multiple Choice

Tickets to the combined amusement park and water slide were $49 for the day.Then the company gave customers the option to purchase tickets for either the amusement park or the water slide for $18.To help keep costs in line,the park management also began charging its customers a small parking fee.Initially,the cost of parking was figured into the $49 price.The amusement park is using:

• A) price lining
• B) potential (or base)pricing
• C) unbundling
• D) professional services pricing
• E) price maintenance

---

Definitions:

Average Variable

Pertains to the expenses that change in proportion to the activity of a business, averaged per unit of production or operation.

Average Total Cost

The average cost per unit of output, calculated by dividing the total production cost by the number of units produced.

Producing Purses

The process of manufacturing handbags, which involves design, selection of materials, and assembly.

Average Fixed Cost

The aggregate fixed production costs per unit of output, calculated by dividing these costs by the total quantity of products made.