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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