​For Products Like Parking Lots and Hotels,costs of Building Capacity

question 71

Multiple Choice

​For products like parking lots and hotels,costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints.Therefore,

• A)​If SRMR>SRMC at capacity,then the firms should price to fill capacity
• B)If SRMR<SRMC at capacity,then the firms should price to fill capacity
• C)If LRMR>LRMC at capacity,then the firms should price to fill capacity
• D)​If LRMR>LRMC at capacity,then the firms should price to fill capacity

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Definitions:

Cue-dependent Forgetting

A type of memory loss where the inability to recall information is due to missing cues or triggers that were present at the time the memory was encoded.

Decay

The natural process of decomposition or decline in quality, strength, or vigor over time.

Encoding Failure

A situation in which information fails to be stored into long-term memory, leading to the inability to recall it later.

Elaboration Failure

The inability to add detail or supplement information to a memory or concept, often leading to a lack of depth in understanding or recall.