Many college basketball programs require alumni to join a booster club before they can buy season tickets. This is an example of

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Many college basketball programs require alumni to join a booster club before they can buy season tickets. This is an example of:

A. first degree price discrimination.

B. cost-plus pricing.

C. a two-part tariff.

D. block pricing.

This is an example of C. a two-part tariff.

Explanation:

A two-part tariff is a price discrimination technique. When a business uses this technique, it charges a fee for the right to use its product. Later, it also charges for unit usage or consumption. That is precisely the case described. In this situation, people are first required to join a booster club, which already includes paying a fee. Later, they will pay per unit (ticket) used.

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