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  3. Study Set
    Economics Study Set 1
  4. Exam
    Exam 12: Economic Efficiency and Public Policy
  5. Question
    Suppose Your Municipality Charges Your Household a Flat Fee of $100
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Suppose Your Municipality Charges Your Household a Flat Fee of $100

Question 1

Question 1

Multiple Choice

Suppose your municipality charges your household a flat fee of $100 per year plus $2 per cubic metre of water used.This pricing policy is an example of


A) marginal-cost pricing.
B) average cost pricing.
C) a two-part tariff.
D) utility pricing.
E) linear pricing.

Correct Answer:

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