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:

Maslow

An American psychologist who created the hierarchy of needs, a theory in psychology concerning human motivation based on prioritized needs.

Spontaneous

Occurring without apparent external cause; impromptu or unplanned.

Reproductive Payoffs

Benefits or advantages obtained through reproducing, often in the context of evolutionary biology, referring to the success of passing genes to the next generation.

Evolutionary

Pertains to the gradual process of biological change and development over successive generations.