Bill signed up for a mobile phone contract with at&t. bill pays a fixed monthly charge for the phone service plus a per-minute charge for use of the phone. this is an example of _______

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02-08-2022
Business

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Bill signed up for a mobile phone contract with at&t. bill pays a fixed monthly charge for the phone service plus a per-minute charge for use of the phone. this is an example of _______

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anshumanaryan799 anshumanaryan799 · Answer 1 · 2022-08-09T14:02:51-04:00

Bill signed up for a mobile phone contract with at&t. bill pays a fixed monthly charge for the phone service plus a per-minute charge for use of the phone. this is an example of Two part pricing

Two-Part Pricing (also known as Two-Part Tariff) = A form of pricing in which consumers are charged both an entry fee (fixed price) and a usage fee (price per unit). An example of two-tiered pricing is a phone plan that charges a fixed monthly fee and a fee per minute of phone usage.

Two-part pricing (TPT) is a form of price discrimination in which the price of a product or service consists of two parts: a flat fee and a unit fee. Generally, such pricing techniques only occur in partially or completely monopolistic markets. It is designed to help businesses capture more consumer surplus than they would in a non-discriminatory pricing environment. Split fees can also exist in a competitive market if consumers are not sure of the ultimate demand.

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