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

question 111

Multiple Choice

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

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Definitions:

Strategic Plans

Those plans that establish the long-range objectives and overall strategy or course of action by which a firm fulfills its mission.