Which of the Following Is an Example of Peak-Load Pricing

question 47

Multiple Choice

Which of the following is an example of peak-load pricing?

• A)Charging less for vacations to Hawaii during December and January.
• B)Charging more for electricity on hot days.
• C)Setting price equal to marginal cost when there is a capacity constraint.
• D)Selling excess capacity at lower prices.

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Definitions:

Programmed Decision

A decision made in response to recurring organizational problems that involve predictable, routine procedures.

Probation

A trial period during which a new employee's performance and suitability for a position are evaluated by their employer, or a judicial sentence that allows an offender to remain in the community under supervision instead of serving time in prison.

Reorder Inventory

The process of restocking products or materials in business operations to maintain an adequate supply level.

Non-Programmed Decision

A decision made in response to situations that are unique, poorly defined, and largely unstructured, often requiring creative problem-solving.