Which of the Following Is an Example of a Two-Part

question 377

Multiple Choice

Which of the following is an example of a two-part tariff?

• A) price discrimination based on the buyers' willingness to pay
• B) charging a hookup fee plus a monthly charge equal to marginal cost
• C) higher sales tax on specific products
• D) different prices based on the cost of production and quantity bought
• E) A regulated firm uses marginal cost pricing for some customers and average cost pricing for other customers.

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Definitions:

Income

The amount of money received by an individual or entity in exchange for labor or services, through investments, or from any other sources.

Nuts

Typically refers to dry, edible seeds or fruits with a high fat content, but in economics or general usage, it might not have a specialized meaning beyond its common understanding.

Berries

Small, pulpy, and often edible fruits, typically containing multiple seeds.

Utility Function

A mathematical representation of how consumer preferences over a set of goods and services translate into levels of satisfaction or utility.