Some Firms Require Consumers to Pay an Initial Fee for the Right

question 118

Multiple Choice

Some firms require consumers to pay an initial fee for the right to buy their product and an additional fee for each unit of the product they purchase.This practice is referred to as

• A)odd pricing.
• B)dual pricing.
• C)a two-part tariff.
• D)intertemporal pricing.

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Definitions:

Sales Volume

The total number of units of a product or service sold during a specific period.

Variable Expenses

Expenses that vary depending on the amount of products made or the volume of sales transactions.

Break-even Point

The level of production or sales at which a business's revenues equal its expenses, resulting in neither profit nor loss.

Fixed Expenses

Costs that do not change in total with variations in the volume of activity, such as rent, salaries, and insurance.