Does peak load pricing lead to greater efficiency? ...

[craiczarry]

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

[lkoler]

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]

Thank you

[lkoler]

Happy to help you