Peak-load pricing is typically introduced when:
A)there are several competing firms.
B)resale of the product is relatively easy.
C)production costs vary in different time periods.
D)consumer demands are highly stable.

Question

Quizplus · Accepted Answer

Peak-load pricing is introduced when production costs vary in different time periods. This allows the firm to charge higher prices during periods of high demand when production costs are also high, and lower prices during periods of low demand when production costs are also lower. This helps to maximize profits for the firm.

Peak-Load Pricing Is Typically Introduced When