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

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

Indicate whether the statement is true or false

ANSWER

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.