With a two-part tariff:
A) consumers simply pay a fixed fee if they buy anything at all.
B) consumers pay a fixed fee if they buy anything at all, plus a separate per-unit price for each unit they buy.
C) consumers pay a fixed fee if they buy anything at all, plus an annual fee for the right to purchase anything.
D) consumers simply pay a fee for the right to buy anything.

Question

Quizplus · Accepted Answer

In a two-part tariff, consumers pay a fixed fee if they buy anything at all, plus a separate per-unit price for each unit they buy. This allows the seller to capture a portion of the consumer surplus while still incentivizing them to buy more units. Option A, C, and D all involve fixed fees, but do not capture any portion of the consumer surplus.

With a Two-Part Tariff