An Electricity Provider Charges Consumers $0

question 11

Multiple Choice

An electricity provider charges consumers $0.20 per kWh for the first 100 kWh, $0.25 per kWh for the next 50 kWh, and $0.27 per kWh for all subsequent kWH of usage. This would be considered

• A)an antitrust violation.
• B)an example of increasing-block pricing.
• C)bad business practices.
• D)an example of three-part pricing.

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Definitions:

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and other entities.

Cost of Labor

The total amount spent by employers to compensate employees, including wages, benefits, and any other costs associated with employment.

Serve The Same Customers

The practice of targeting and catering to the same client base by different businesses or services.

FLSA

The Fair Labor Standards Act, a U.S. law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.