Revenue when a firm engages in peak-load pricing based on the figurebelow will be:P4P₁P₂P₁MRLow DowQ₁Select one:Q₂a. (P 1x Q 2) + (P 2x Q 3).b. (P 3x Q 1) + (P 4* Q 3).c. (P ₁x Q₁) + (P 4* Q 3).d. (P 4* Q 3).MCQ₁DrighMRHighMAR

Customers pay extra when peak and congestion pricing is used during times of high demand. Utility…

Answered: below will be: P4 Py P₂ P₁ MRLow Dow Q₁…

below will be: P4 Py P₂ P₁ MRLow Dow Q₁ Select one: Q₂ a. (P ₁x Q 2) + (P 2* Q 3). b. (P 3x Q 1) + (P 4* Q 3). c. (P ₁x Q₁) + (P 4* Q 3). d. (P 4* Q 3). MC Q₁ Drigh MRHigh Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Revenue when a firm engages in peak-load pricing based on the figure
below will be:
P4
P₁
P₂
P₁
MRLow Dow
Q₁
Select one:
Q₂
a. (P 1x Q 2) + (P 2x Q 3).
b. (P 3x Q 1) + (P 4* Q 3).
c. (P ₁x Q₁) + (P 4* Q 3).
d. (P 4* Q 3).
MC
Q₁
Drigh
MRHigh
MAR

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