A Two-Part Tariff Is a Form Of

question 17

Multiple Choice

A two-part tariff is a form of:

• A)first-degree price discrimination because average cost falls with quantity purchased.
• B)second-degree price discrimination because average price paid by the consumer falls with higher quantity purchased.
• C)block pricing because marginal cost rises with quantity sold.
• D)third-degree price discrimination because different customers pay different prices.

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