All of the following are examples of two-part pricing EXCEPT:
A) Telephone services that impose a fixed monthly fee to have a phone plus an additional charge per time unit of phone use.
B) Cellular services that impose a fixed monthly fee to have a cellular phone plus an additional charge per time unit of cellular phone use.
C) Golf courses that charge a membership fee plus a green fee per unit of use.
D) Amusement parks that charge an entry fee plus an additional fee for using each ride or attraction.
E) A garbage fee, charged by your municipal trash service that is attached to your monthly utility bill that you pay even if you don't put out any trash.

Question

Quizplus · Accepted Answer

The garbage fee mentioned in option E is an example of a single-part pricing, where customers are charged a fixed fee regardless of usage. All other options listed are examples of two-part pricing, where customers are charged a fixed fee plus an additional fee based on usage.

All of the Following Are Examples of Two-Part Pricing EXCEPT