Hotline Long Distance Service Uses Captive-Product Pricing for Its Phone

question 1

Multiple Choice

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 per-call ________.

• A)fixed rate usage
• B)variable usage rate
• C)standard usage rate
• D)market usage rate
• E)fixed fee

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Definitions:

Subsidiary

A company that is owned or controlled by another company, often referred to as the parent company.

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