Which of the Following Is NOT a Characteristic of Cost-Of-Service

question 41

Multiple Choice

Which of the following is NOT a characteristic of cost-of-service pricing?

• A)​Prices are established based on fixed and variable costs of transportation
• B)​Prices vary based on volume and distance
• C)​Prices tend to rise as shipping distance increases
• D)​Carriers price their services at the highest levels the markets will bear

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Definitions:

Heating Oil

A low viscosity, liquid petroleum product used as a fuel oil for furnaces or boilers in buildings. It is a major component in home heating solutions in colder regions.

Quantity Supplied

The amount of a commodity that producers are willing to sell at a particular price over a given period of time.

Supply

The total amount of a product or service that is available to consumers at a given price level.

Quantity Supplied

The volume of a commodity or service suppliers are prepared and able to market at a certain price.