Question

Which one of the following is a false statement ?

A Ramsey pricing rates to the methodology of pricing to situations where firms are regulated and the maximization of allocative efficiency is the objective of pricing together with the objective of profit - maximization.

B Peak-load pricing is a pricing practice where price varies with time of the day.

C Value-pricing is the practice of pricing where the price is set based on its value to the customer.

D Two - part tariff refers to a price structure which has two parts - a lump sum charge and a variable charge.

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Answer & Explanation
Answer:Ramsey pricing rates to the methodology of pricing to situations where firms are regulated and the maximization of allocative efficiency is the objective of pricing together with the objective of profit - maximization.