Southeast Telephone Company uses two-part pricing for its long-distance call charges.Because this is a service,the price is broken into a fixed fee plus a(n)________.
A) fixed usage rate
B) variable usage rate
C) standard usage rate
D) market usage rate
E) optional usage rate

Question

Quizplus · Accepted Answer

Two-part pricing involves a fixed fee and a usage rate. The usage rate, in this case for long-distance calls, would vary based on the amount of usage, making it a variable usage rate. Therefore, the best choice is B.

Southeast Telephone Company Uses Two-Part Pricing for Its Long-Distance Call