For a theme park two-tier pricing can include a positive ...

[penguins]

For a theme park two-tier pricing can include a positive admission price and a zero per-ride fee.
 
  Indicate whether the statement is true or false

Question 2

An incumbent announces it will significantly increase output in the next period, but only has contracts for the amount produced this period. The announcement is a
 
  A) credible threat.
  B) non-credible threat.
  C) commitment.
  D) mixed strategy.

[taylorsonier]

Answer to Question 1

True . Both fees do not have to be positive. The firm will choose the combination of fee and per-ride price that maximizes profits.

Answer to Question 2

B

[penguins]

Thank you

[taylorsonier]

No problemo