ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Economic efficiency is greatly improved by charging higher prices during peak times.
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TRUE
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FALSE
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Peak Load Pricing = charging a high price during demand peaks, and a lower price during off-peak time periods. generate the peak demand. To cover these higher costs, the firm will charge the higher price P2 during peak hours.
Detailed explanation-2: -The higher the price, the more suppliers are likely to produce. Conversely, buyers tend to purchase more of a product the lower its price. The equation that spells out the quantities consumers are willing to buy at each price is called the demand curve.
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