In the pricing of services, two part pricing involves which of the following?
A) a fixed fee component plus a variable usage rate
B) a fixed price plus a variable price
C) a basic service establishment fee plus an annual subscription fee
D) a low basic price with an intention to recoup on selling extra services
E) a membership fee plus a variable component

Question

Quizplus · Accepted Answer

Two part pricing involves a fixed fee component and a variable usage rate. Customers pay a fixed fee for access to the service or product, and then a variable usage rate based on how much they use the service. This pricing strategy is commonly used for utility services like electricity or water.

In the Pricing of Services, Two Part Pricing Involves Which