When perfect price discrimination comes in the form of a two-part tariff, one part of the "tariff" just covers marginal costs.

Question

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In a two-part tariff, the first part of the tariff covers fixed costs, while the second part covers marginal costs. In perfect price discrimination with a two-part tariff, the fixed part of the tariff would be set at the consumer's maximum willingness to pay, while the marginal part would be set at the true marginal cost. Therefore, one part of the "tariff" would indeed just cover marginal costs.

When Perfect Price Discrimination Comes in the Form of a Two-Part