A two-part price is less efficient than a Ramsey. Indicate ...

[jayhills49]

A two-part price is less efficient than a Ramsey.
 
  Indicate whether the statement is true or false

Question 2

Ramsey pricing avoids cross subsidy.
 
  Indicate whether the statement is true or false

[akudia]

Answer to Question 1

F The two-part price can be more efficient. Think of it this way: Each part of a two-part price may be set as a Ramsey price and two Ramsey prices should be better than one. With two prices there is opportunity for more subtle adjustment.

Answer to Question 2

F It is possible to have Ramsey prices that cross subsidize.

[jayhills49]

Thanks for the timely response, appreciate it

[jojobee318]

TYSM