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.

---

Definitions:

Repetitive Behavior

Actions repeated over and over again, which can be a symptom of several disorders, including OCD and autism spectrum disorders.

Mental Act

A process or activity carried out by the mind, such as thinking, reasoning, or remembering.

Panic Attack

A sudden episode of intense fear or acute discomfort, accompanied by physical symptoms such as heart palpitations, dizziness, and shortness of breath.

Overwhelming Fear

An intense feeling of fright or terror, often sudden and with a clear cause or in response to a specific situation.