Which of the Following Is Not an Example of a Two-Part

question 6

Multiple Choice

Which of the following is not an example of a two-part pricing scheme in the context of price discrimination?

• A)A customer pays full price for the first 10 copies of a software program and then receives a 10 percent discount on each additional copy it buys.
• B)A firm, e.g., Sam's Club or Costco, charges a membership fee that is separate from the price paid for items purchased from the firm.
• C)A customer pays a $10 cover charge to enter a bar and then pays $5 for each beverage.
• D)An amusement park charges an admission fee and then charges a per unit price for each of the rides offered by the park.

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Definitions:

Compensation Rates

The amount of pay or benefits that an employee receives from their employer for their work.

Internal Equity

The practice of ensuring that employees are compensated fairly in relation to one another within the same organization.

External Equity

The fairness of an employee's compensation as compared to what others in the external job market are receiving for similar work.