The figure above shows the costs and demand curves for the Bigshow Cable Company. To avoid any deadweight loss in the market served by Bigshow, the regulator must set the price at

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

In perfect price discrimination, consumer surplus is zero because each consumer pays: a. the market price

b. the cost price. c. peak load price. d. the reservation price