Under peak-load pricing,the price in each period is set:
A)equal to the average cost of production in that period.
B)above the marginal cost of production in that period.
C)where the marginal cost intersects the demand for that period.
D)where the average cost intersects the demand for that period.

Question

Quizplus · Accepted Answer

Under peak-load pricing, prices are set where the marginal cost intersects the demand for that period. This approach helps in managing demand and ensuring that prices reflect the cost of serving customers at different times.

Under Peak-Load Pricing,the Price in Each Period Is Set