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:

Hedge Fund

A Hedge Fund is a private investment fund that uses complex strategies in both domestic and international markets with the goal of generating high returns.

Nondepository Financial Institution

Financial entities that do not accept traditional deposits like a bank, but may offer other financial services such as investment, insurance, and retirement plans.

Market Order

Order that instructs the investor’s broker to obtain the best possible price.

Best Possible Price

Achieving the most favorable cost condition under given circumstances, often in purchasing or selling scenarios.