Economics · Public Economics and Pricing Mechanisms
Which of the following statements regarding the two-part tariff pricing mechanism is/are correct? 1. It is used as a pricing strategy to address market failures caused by lumpy or indivisible infrastructure investments. 2. To achieve allocative efficiency, the per-unit usage fee in this model is set equal to the marginal cost (MC). 3. The fixed access fee component is designed to recover the fixed capital costs associated with the infrastructure.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only 1 and 2
- 2Only 2 and 3
- 3Only 1 and 3
- 41, 2 and 3✓
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1, 2 and 3
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