Interruptible service pricing is very different from peak-load pricing
Indicate whether the statement is true or false
F Not really true. If you as a customer do not pay enough, your service will not be maintained when capacity is scarce; your service will be interrupted. Paying more to maintain your service is like paying a higher, peak, price.
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If a firm hires labor for $20,000, pays rent of $12,000, buys raw materials for $6,000 from another firm, earns profits of $3,000, and sells its output for $41,000, the value added by the firm is _____
a. $0 b. $15,000 c. $35,000 d. $38,000 e. $41,000
Table 10-2 ? Firm A Firm B Firm C Firm D Total revenue (TR) $ 100 150 100 100 Total variable cost (TVC) 180 160 60 140 Short-run nonvariable cost 60 20 60 100 ? Refer to Table 10-2. Which firm is better off staying in business in the short run?
A. Firm A B. Firm B C. Firm C D. Firm D