Two-Part Pricing Interactive

🎯 Set Your Pricing Strategy

Marginal Cost (MC): $3.00

Per-Unit Price: $5.00

$0.50$13.00

Cover Charge (Fixed Fee): $0.00

$0$50

✅ Perfect Two-Part Pricing: P = MC eliminates deadweight loss!

📊 Pricing Outcomes

Consumer Surplus

Deadweight Loss

Profit from Sales

Cover Charge Revenue

Total Firm Profit

Detailed Market Conditions
Measure	Value
Per-Unit Price	—
Cover Charge	—
Quantity Sold	—
Competitive Quantity	—
Marginal Cost	—
Max Cover Charge	—

💡 Key Concept

A two-part tariff has two pieces: (1) a fixed fee (cover charge / membership) and (2) a per-unit price. Setting the per-unit price equal to MC maximizes total output and eliminates deadweight loss. The fixed fee then captures some or all consumer surplus as profit.

Consumer Surplus (retained)

Cover Charge Revenue

Profit from Sales

Deadweight Loss

🍺 Two-Part Pricing

Choose a Scenario: