In peak-load pricing,
A) marginal revenue is equal in both periods.
B) marginal revenue in the peak period is greater than in the off-peak period.
C) marginal revenue in the peak period is less than in the off-peak period.
D) the sum of the marginal revenues is greater than the sum of the marginal costs.

Question

Quizplus · Accepted Answer

Peak-load pricing involves charging higher prices during peak periods of demand and lower prices during off-peak periods. Therefore, in the peak period, customers are willing to pay more for the same product or service, resulting in a greater marginal revenue compared to the off-peak period.

In Peak-Load Pricing