The ability of Dream Park to charge for admission to the park and also to charge for each ride is an example of
A) cost -plus pricing.
B) monopoly pricing.
C) perfect price discrimination.
D) a two -part tariff.

Question

Quizplus · Accepted Answer

A two-part tariff is a pricing strategy where a firm charges a fixed fee for access to a service or product and then an additional variable fee for the actual consumption of the service or product. In this case, Dream Park charges an admission fee for entry into the park (fixed fee) and then charges separately for each ride (variable fee), which is characteristic of a two-part tariff.

The Ability of Dream Park to Charge for Admission to the Park