When Will Setting a Relatively High Entry Fee and a Low

Multiple Choice

When will setting a relatively high entry fee and a low competitive price be the best strategy for a two-part tariff monopolist?

A) When the customers are nearly identical.
B) When the customers have inelastic demand for the product.
C) When the customers place a relatively low value on their time.
D) When the customers can be separated into a number of diverse groups.