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Author Question: Which of the following statements is NOT compatible with explanations for why peak-load pricing is ... (Read 142 times)

cabate

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on: Jul 1, 2018
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.

Question 2

Which of the following is true? Partial equilibrium analysis will
 
  A) overstate the impact of a tax for both substitutes and complements.
  B) understate the impact of a tax for both substitutes and complements.
  C) understate the impact of a tax for complements and overstate the impact for substitutes.
  D) understate the impact of a tax for substitutes and overstate the impact for complements.


chinwesucks

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Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

D


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