The University of Kansas is offering football fans the chance to purchase equity seat rights in order to guarantee season ticket seats and prices for home games for 30 years.This is an example of
A) odd pricing.
B) cost-plus pricing.
C) two-part tariff pricing.
D) the law of one price.

Question

Quizplus · Accepted Answer

This is an example of two-part tariff pricing, where customers are charged an upfront fee for the right to purchase tickets at a guaranteed price for 30 years. The initial fee acts as a fixed cost, while the price of the tickets serves as the variable cost.

The University of Kansas Is Offering Football Fans the Chance