Hotline Long Distance Service uses captive product pricing for its phone call charges.Because this is a service,the price is broken into a fixed rate plus a ________.
A)fixed rate usage
B)variable usage rate
C)standard usage rate
D)market usage rate
E)fixed fee

Question

Quizplus · Accepted Answer

Captive product pricing involves offering a product or service at a low cost but charging a higher price for a related product or service. In this case, the fixed rate is the low cost component, while the variable usage rate is the higher price charged for the phone call service. Therefore, the best choice is B.

Hotline Long Distance Service Uses Captive Product Pricing for Its