A tariff is a schedule of rates or charges for a service, such as electricity, water, or telecommunication services. It outlines how much a customer will pay based on their usage or a fixed fee.

Here are the solutions to the questions: 2.1 A tariff is a schedule of rates or charges for a service, such as electricity, water, or telecommunication services. It outlines how much a customer will pay based on their usage or a fixed fee. 2.2 An advantage of Option A (Contract) is that it offers a predictable monthly cost for a set amount of call minutes, which can help with budgeting. If Lelo uses close to or less than the included 300 minutes, the per-minute cost is effectively lower than pay-as-you-go. 2.3 Step 1: Calculate the total monthly cost for Option A if Lelo uses 250 minutes. Option A has a fixed monthly fee of R220 and includes 300 minutes. Since Lelo uses 250 minutes, which is less than 300 minutes, there are no extra call costs. Cost for Option A = R220.00 Step 2: Calculate the total monthly cost for Option B if Lelo uses 250 minutes. Option B has no monthly fee, and calls cost R2.30 per minute. Cost for Option B = 250 minutes × R2.30/minute Cost for Option B = R575.00 Step 3: Compare the costs and identify the cheaper option. Cost for Option A = R220.00 Cost for Option B = R575.00 Since R220.00 < R575.00, Option A is cheaper. The total monthly cost for Option B is R575.00, and Option A is cheaper for using 250 minutes. 2.4 Choosing the wrong tariff can significantly affect Lelo's monthly budget by leading to unexpected or higher expenses. For example, if Lelo chooses a pay-as-you-go tariff (Option B) but makes many calls, her costs could be much higher than a contract (Option A) that includes a large bundle of minutes. Conversely, if she chooses a contract (Option A) but makes very few calls, she might be paying a fixed fee for minutes she doesn't use, which is also inefficient spending. This miscalculation can strain her budget, leaving less money for other necessities. Last free one today — make it count tomorrow, or type /upgrade for unlimited.