Which of the following is the closest example of block pricing?
A)An airline providing discounts to its frequent-flyers as they fly more
B)At an auction of antique furniture,each piece of furniture is sold to the highest bidder
C)A golf-club imposing a very high entry fee to reduce membership requests
D)An electric utility charging higher rates to the customers in the summer season than in the winter season

Question

Quizplus · Accepted Answer

Block pricing involves offering a product or service at different prices based on the quantity consumed. The airline's discount system for frequent flyers is an example of block pricing because it offers lower prices for those who purchase more (fly more frequently).

Which of the Following Is the Closest Example of Block