Which of the following statements about two-part tariffs is false?
A)Because each individual has a different individual demand curve, if there is just one entrance fee some consumers will be able to reap some consumer surplus.
B)The producer cannot capture the entire consumer surplus because the entrance fee might discourage some potential consumers even though they would have been willing to pay a lesser entrance fee.
C)A two-part tariff allows a producer to capture the entire consumer surplus.
D)For a two-part tariff to be successful, the producer must be able to identify two distinct customer groups.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements about two-part tariffs is false?
A)Because each individual has a different individual demand curve, if there is just one entrance fee some consumers will be able to reap some consumer surplus.
B)The producer cannot capture the entire consumer surplus because the entrance fee might discourage some potential consumers even though they would have been willing to pay a lesser entrance fee.
C)A two-part tariff allows a producer to capture the entire consumer surplus.
D)For a two-part tariff to be successful, the producer must be able to identify two distinct customer groups.

Which of the Following Statements About Two-Part Tariffs Is False