____ as practiced by public utilities is designed to encourage greater usage and therefore spread the fixed costs of the utility's plant over a larger number of units of output.
A)Peak load pricing
B)Inverted block pricing
C)Block pricing
D)First degree price discrimination
E)none of the above

Question

Quizplus · Accepted Answer

Block pricing is designed to encourage greater usage by charging a lower price per unit for higher levels of consumption. This spreads the fixed costs of the utility's plant over a larger number of units of output, as customers who use more energy pay a lower average price per unit.

____ as Practiced by Public Utilities Is Designed to Encourage