A monopolist would use a two-part tariff to transfer

Question

Quizplus · Accepted Answer

A monopolist would use a two-part tariff to transfer consumer surplus to the monopolist. This is because a two-part tariff involves the monopolist charging a fixed fee (the first part) and then an additional charge per unit (the second part) for each unit purchased. This effectively captures any remaining consumer surplus and transfers it to the monopolist, as consumers are required to pay the fixed fee regardless of their willingness to pay for the product.

A Monopolist Would Use a Two-Part Tariff to Transfer