Which of the Following Statements Is NOT Compatible with Explanations

question 16

Multiple Choice

Which of the following statements is NOT compatible with explanations for why peak-load pricing is more profitable than charging a single price?

• A) Consumer willingness to pay for the product varies a lot across different time periods.
• B) Marginal cost of production is much higher under peak demand.
• C) Marginal revenue changes a lot across different time periods.
• D) Marginal revenue must be the same across different time periods.

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Definitions:

Product-oriented Layout

An arrangement of resources in a production environment where machinery and equipment are organized according to the sequence of operations required to produce a particular product efficiently.

Sugar Beets

Sugar beets are a root vegetable typically cultivated in temperate climates for the production of sugar, containing a high concentration of sucrose.

Assembly Line Balancing

The process of assigning tasks to workstations, so that each has a similar amount of work and the production process is as efficient as possible.

Cycle Time

The total time from the beginning to the end of a process, indicating the speed at which a product moves through a production system.