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A flat rate tariff charges

  • A.a higher price during the peak hours
  • B.a single price for every unit consumed
  • C.a fixed sum irrespective of consumption
  • D.a lower price for each successive block

Answer: B

Correct answer: a single price for every unit consumed

A flat rate tariff charges the same amount per unit however much is consumed and whenever it is taken. It is simple to understand and to administer, which is its whole merit, but it recovers no fixed cost from a consumer who uses little and gives no signal about the time or the manner of consumption.

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