Which of the Following Statements About Two-Part Tariffs Is False

question 103

Multiple Choice

Which of the following statements about two-part tariffs is false?

• A)Because each individual has a different individual demand curve, if there is just one entrance fee some consumers will be able to reap some consumer surplus.
• B)The producer cannot capture the entire consumer surplus because the entrance fee might discourage some potential consumers even though they would have been willing to pay a lesser entrance fee.
• C)Two-part tariff pricing allows a producer to capture the entire consumer surplus.
• D)For two-part tariff pricing to be successful, the producer must be able to identify two distinct customer groups.

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Definitions:

Maternal Illness

Any disease or condition that affects a mother’s health during pregnancy, which can have implications for the fetus or newborn.

Developing Organism

An organism in the process of growth and development, from conception until maturity.

Prenatal Exposure

Refers to the exposure of a developing fetus to substances, conditions, or influences while in the womb, which can impact health outcomes.

Maternal Exposure

The contact or experience of a mother with potentially harmful substances, conditions, or stressors during pregnancy that may affect fetal development.