A firm that faces a high- demand period followed by a low- demand period must determine all of the following for peak- load pricing except which one?
A)short- term peak price
B)long- term peak quantity
C)short- term off- peak price
D)long- run capacity

Question

Quizplus · Accepted Answer

The firm must determine short-term peak price, short-term off-peak price, and long-run capacity to effectively implement peak-load pricing. However, long-term peak quantity is not a relevant consideration as demand can vary significantly over time and it is difficult to accurately predict long-term demand.

A Firm That Faces a High- Demand Period Followed by a Low-