The Following Information Relates to Questions 16 and 17

question 4

Multiple Choice

The following information relates to questions 16 and 17
TelCo provides a bundled service offering to a customer for $3000 upfront. The services provided are as follows:
Upfront advice
'on-call' advice
Database access for a 2-year period
If TelCo were to charge a separate fee for each service if sold separately the fee would be:
Up-front advice $200
On-call advice $2600
Database access $800
-The revenue that would be recorded by TelCo at the inception of the agreement is:

• A) $166
• B) $833
• C) $1500
• D) $3000

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Definitions:

Total Income

The sum of all earnings or revenue generated by an individual or entity.

United States

A nation situated in North America, made up of 50 states and one federal district, renowned for its vast economy and varied demographics.

Factors of Production

The inputs used in the production of goods or services in the process of economic activity, including land, labor, capital, and entrepreneurship.

Inputs

Resources such as labor, capital, and materials used in the production process to create an output.