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Home Q & A Board Other Fields Homework Help Business Economics
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mbell1189 mbell1189
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3 years ago
When there is a capacity constraint,

▸ firms face sunk costs when deciding whether or not to expand.

▸ consumers will avoid the producer and go with a firm that has extra capacity.

▸ firms are not maximizing their profits during high season.

▸ firms can use peak-load pricing to increase profits during periods of high demand.
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Managerial Economics and Strategy

Managerial Economics and Strategy


Edition: 3rd
Authors:
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1234why1234why
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mbell1189 Author
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3 years ago
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