With two-part tariff pricing,it is assumed that a customer buys the quantity that provides the largest difference between value and total price.

Question

Quizplus · Accepted Answer

The two-part tariff pricing model involves charging a fixed fee (such as a membership fee) plus a variable fee based on the quantity consumed. In this model, the customer is incentivized to purchase a larger quantity in order to maximize the value gained from the fixed fee component. Therefore, it is assumed that the customer will purchase the quantity that provides the largest difference between value and total price, making the statement true.

With Two-Part Tariff Pricing,it Is Assumed That a Customer Buys