Which of the Following Describes Two-Part Tariff Pricing

question 21

Multiple Choice

Which of the following describes two-part tariff pricing?

• A)A firm charges two different prices for the same good.
• B)An importer has to pay a tax at the nation's borders, and a sales tax when the good is sold.
• C)A buyer pays an initial price for entrance to the market and an additional fee for each unit of the product purchased.
• D)A buyer must pay a down payment and monthly payments to buy big-ticket items such as a car, a plasma television, or a suite of furniture.

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Definitions:

Working Capital Ratio

A financial metric used to determine a company's ability to pay off its current liabilities with its current assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a company.

Current Assets

Assets on a balance sheet that are expected to be converted into cash, sold, or consumed within a year.