Consider a discount retailer such as Costco which uses a two-part tariff pricing strategy.The Costco membership fee
A)buys the consumer the right to make future purchases at Costco.
B)is a resalable asset to the consumer.
C)is a resalable asset to the producer.
D)is used by Costco to cover its fixed costs of production.

Question

Quizplus · Accepted Answer

The Costco membership fee grants the consumer access to make future purchases at Costco, which is the main benefit of the membership. The fee is not a resalable asset for either the consumer or the producer, and it may cover some of Costco's fixed costs, but that is not the primary purpose of the fee.

Consider a Discount Retailer Such as Costco Which Uses a Two-Part