In Peak-Load Pricing

question 115

Multiple Choice

In peak-load pricing,

• A) marginal revenue is equal in both periods.
• B) marginal revenue in the peak period is greater than in the off-peak period.
• C) marginal revenue in the peak period is less than in the off-peak period.
• D) the sum of the marginal revenues is greater than the sum of the marginal costs.

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Definitions:

Positive Relationship

A positive relationship in economics indicates that an increase in one variable is associated with an increase in another variable.

Cartesian Coordinate System

A coordinate system that specifies each point uniquely in a plane by a set of numerical coordinates, which are the distances to the point from two perpendicular directed lines.

Variable

An element, feature, or factor that is likely to vary or change; in scientific experiments, the characteristic that is tested to observe its effects.

Time

A measurable period during which events occur, processes take place, or conditions exist.