Some firms require consumers to pay an initial fee for the right to buy their product and an additional fee for each unit of the product they purchase.This practice is referred to as
A)odd pricing.
B)dual pricing.
C)a two-part tariff.
D)intertemporal pricing.

Question

Quizplus · Accepted Answer

The practice described is a two-part tariff, where consumers must pay both an initial fee and an additional fee for each unit purchased. Odd pricing refers to pricing strategies that end in an odd number (e.g. $9.99 instead of $10), dual pricing typically refers to different prices for different types of customers (such as student vs. regular price), and intertemporal pricing refers to pricing strategies that vary over time (such as peak vs. off-peak pricing).

Some Firms Require Consumers to Pay an Initial Fee for the Right