Peak load pricing helps firms gain profit because
A. people are willing to pay more for the first units they consume of a good.
B. low prices when demand is strong means high volume sales.
C. they can serve their customers with a smaller capital base.
D. demand shifts left during peak load hours.
Answer: C
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The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the tuition that will make the number of students equal to the efficient number?
A) $400 B) $800 C) $2,800 D) $3,200
A supply schedule
A) can be used to generate a supply curve. B) is a table reflecting the inverse relationship between price and quantity supplied. C) shows what happens to quantity supplied when price is held constant. D) all of the above.
The automatic stabilizers are:
a. Powerful engines that can move nations closer to full employment and price stability. b. Most beneficial to nations that are far away from their ideal economic position. c. Most beneficial to nations that are close to the ideal economic position. d. Very beneficial to nations regardless of whether they are far above or far below full employment.
Technological change, such as the information technology revolution of the 1990s can shift the aggregate supply curve outward. If, at the same time, the government is decreasing spending, the most likely outcome of these two factors is a(n)
A. increase in the price level. B. decrease in the price level. C. increase in real GDP. D. decrease in real GDP.