If the golfers at Green Golf all have identical demands and Green Golf practices two- part pricing, the profit- maximizing user fee is ______Green Golf's marginal cost.
A)greater than
B)less than
C)equal to
D)one- half of

Question

Quizplus · Accepted Answer

In a two-part pricing strategy, the profit-maximizing user fee is set equal to the marginal cost to maximize the quantity sold while extracting consumer surplus through a fixed fee.

If the Golfers at Green Golf All Have Identical Demands