Which of the following statements is NOT compatible with explanations for why peak-load pricing is more profitable than charging a single price?
A) Consumer willingness to pay for the product varies a lot across different time periods.
B) Marginal cost of production is much higher under peak demand.
C) Marginal revenue changes a lot across different time periods.
D) Marginal revenue must be the same across different time periods.

Question

Quizplus · Accepted Answer

The statement "Marginal revenue must be the same across different time periods" is not compatible with the explanation for why peak-load pricing is more profitable than charging a single price, as peak-load pricing assumes that marginal revenue will be higher during peak demand periods due to consumer willingness to pay more for the product.

Which of the Following Statements Is NOT Compatible with Explanations