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
Question 2
In a repeated game, deterring entry
A) is not possible.
B) is not a rational strategy if money is lost fighting the first potential entrant.
C) may require losing money fighting the first potential entrant.
D) cannot form a subgame perfect Nash equilibrium.
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