BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
A two-part tariff is used in linear pricing.
|
|
true
|
|
|
false
|
Explanation:
Detailed explanation-1: -Two-Part Tariff: When the rate of electrical energy is charged based on maximum demand of the consumer and the units consumed, it is called a two-part tariff.
Detailed explanation-2: -A linear tariff is one in which the operator charges a single price for the service. A common multi-part tariff is the two-part tariff in electricity, under which the customer pays a monthly fee for access and a usage fee for consumption of electricity.
Detailed explanation-3: -A two-part tariff (2PT) imposes both a fixed (access) fee and a per-unit (usage) fee, and a three-part tariff (3PT) generalizes it by bundling some free units (an allowance) into the fixed fee.
There is 1 question to complete.