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Author Question: Does peak load pricing lead to greater efficiency? Explain.[br][br][b][color=red]Question ... (Read 78 times)

craiczarry

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on: Jun 30, 2018
Does peak load pricing lead to greater efficiency? Explain.

Question 2

Which of the following had resulted from the Smithsonian agreement of 1971?
 a. Devaluation of the U.S. dollar
  b. Dissolution of a fixed exchange rate regime
  c. Appreciation of the U.S. dollar
  d. Establishment of an equilibrium exchange rate
  e. Laissez-faire in the foreign exchange market


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lkoler

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Peak load pricing leads to greater efficiency. This is because consumer prices reflect the higher marginal costs of production during peak periods. Consumers have an incentive to reduce the consumption of a service when the cost of providing the service is the highest.

Answer to Question 2

a


craiczarry

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Reply #2 on: Jun 30, 2018
Thank you :)


lkoler

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Reply #3 on: Jun 30, 2018
Happy to help you


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