An increasing block pricing structure for water supplies
A) creates an economic incentive to conserve water usage
B) charges a higher price for lower levels of water consumption
C) does not reflect the underpinnings of benefit-cost analysis
D) ignores the marginal cost of water consumption

Question

Quizplus · Accepted Answer

An increasing block pricing structure for water supplies charges more per unit of water as consumption increases, thereby creating an economic incentive for consumers to conserve water in order to pay less.

An Increasing Block Pricing Structure for Water Supplies