In the situation in which consumers have nonidentical demands in two- part pricing, a firm's profit is always increased if it adjusts the access fee and user fee to sell to all consumers.

Question

Quizplus · Accepted Answer

In a two-part pricing strategy, while adjusting the access fee and user fee can potentially increase a firm's profit by capturing more consumer surplus, it does not always lead to an increase in profit. The firm must balance the revenue gained from additional consumers against the potential loss in revenue from lowering prices for existing consumers, and in some cases, targeting only the high-value consumers with higher fees might be more profitable.

In the Situation in Which Consumers Have Nonidentical Demands in Two-