Which of the following is not an example of a two-part pricing scheme in the context of price discrimination?
A)A customer pays full price for the first 10 copies of a software program and then receives a 10 percent discount on each additional copy it buys.
B)A firm, e.g., Sam's Club or Costco, charges a membership fee that is separate from the price paid for items purchased from the firm.
C)A customer pays a $10 cover charge to enter a bar and then pays $5 for each beverage.
D)An amusement park charges an admission fee and then charges a per unit price for each of the rides offered by the park.

Question

Quizplus · Accepted Answer

Two-part pricing involves a fixed fee plus a variable charge for each unit of the product or service consumed. Choices B, C, and D are examples of two-part pricing because they involve a fixed fee (membership fee, cover charge, admission fee) plus a variable charge (price for items, price per beverage, price per ride). Choice A describes a quantity discount, not a two-part pricing scheme, as it involves a discount on the variable charge after a certain quantity is purchased without a separate fixed fee.

Which of the Following Is Not an Example of a Two-Part