EX: amusement park golf courseEX: amusement park, golf course, telephone service.Pay a fee to play golf and then payPay a fee to play golf and then pay another fee for each game you play.Buying Polaroid Camera (entry fee) andBuying Polaroid Camera (entry fee) and pay for each film purchase (usage fee).19
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Two-Part Tariff with a Single CUsage price =P*is set equal to MCConsumer$/QUsage price P is set equal to MC. Entry price = T*, the entire consumer surplus.Firm captures all consumer surplus as profitT*MCP*DQuantity Q*= Competitive Q and hence DWL =020QuantityQ*