Most economists support the idea of peak-load pricing on the grounds of

Question

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Most economists support peak-load pricing on the grounds of efficiency in output allocation. This is because it encourages consumers to reduce consumption during periods of high demand, thereby shifting some of that demand to off-peak periods where resources are underutilized. This reduces the need for costly investments in additional capacity to meet peak demand, and it ensures that resources are distributed more efficiently.

Most Economists Support the Idea of Peak-Load Pricing on the Grounds