Answer the following statements true (T) or false (F)
1) In peak-load pricing, the capacity decision is made in the short run.
2) In peak-load pricing, the capacity decision is only based on conditions during the peak period.
3) Off-peak demand influences the capacity decision in peak-load pricing.
4) The capacity decision in peak-load pricing is found by setting the peak marginal revenue equal to the long-run marginal cost.
5) In peak-load pricing, the short-run marginal cost is equal to the marginal cost of providing capacity.
1) FALSE
2) TRUE
3) FALSE
4) TRUE
5) FALSE
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The quantity supplied of a good, service, or resource is ________ during a specified period and at a specified price
A) the amount that people are able and willing to sell B) the amount that people are willing and able to buy C) the amount that people are able to sell D) the amount that people are willing to sell E) the amount sold
Even though it is not a perfect measure, economists can use real GDP to
i. compare how the value of the goods and services produced in China have changed over the past 10 years. ii. look at the length of recessions and expansions in the United States. iii. compare the standard of living in China versus the standard of living in Vietnam. A) ii only B) i, ii and iii C) i and iii D) i and ii E) ii and iii
The natural resources used in production are made available in the
A) government market. B) factor market. C) product market. D) goods and services market.
A variable that tends to move at the same time as aggregate economic activity is called
A) a leading variable. B) a coincident variable. C) a lagging variable. D) an acyclical variable.