Teresa and Debbie have decided to keep their new power boat in a "drystack" storage facility rather than in the water at a marina. The storage facility charges them a fee of $500 per year, plus $25 each time they call ahead and ask the facility to put their boat in the water for the day or weekend. Which pricing tactic is the facility using?

Question

Quizplus · Accepted Answer

The storage facility is using two-part pricing, where there is a fixed fee (annual fee of $500) and a variable fee (charge of $25 each time the boat is put in the water).

Teresa and Debbie Have Decided to Keep Their New Power