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 off- peak price
B)long- run capacity
C)short- term peak quantity
D)long- term off- peak quantity

Question

Quizplus · Accepted Answer

Peak-load pricing decisions typically involve determining prices and quantities for high-demand (peak) and low-demand (off-peak) periods, as well as the capacity needed to meet these demands. The long-term off-peak quantity is not a direct consideration in peak-load pricing strategy, as the focus is more on managing demand and capacity during different periods rather than specifying long-term quantities for off-peak times.

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