In two-part pricing
A)consumers pay a lump-sum for all the goods purchased.
B)the consumer must pay a lump sum if he buys more than a certain number of units of a good.
C)a firm charges more for units purchased on the weekend than for those purchased during the week.
D)the average price paid per unit is higher with a small number of units purchased than if a large number of units is purchased.

Question

Quizplus · Accepted Answer

In two-part pricing, consumers face a pricing structure where there is often an initial fee plus a per-unit charge. As a result, the average price per unit decreases as more units are purchased, because the initial fee is amortized over more units.

In Two-Part Pricing