In peak- load pricing, the capacity decision is only based on conditions during the peak period.

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Peak-load pricing is a pricing strategy where a higher price is charged during peak periods and a lower price is charged during off-peak periods. In this strategy, the capacity decision is based on the conditions during the peak period as it is the most critical time for the business. The goal is to have enough capacity to meet the demand during the peak period while minimizing unused capacity during the off-peak period.

In Peak- Load Pricing, the Capacity Decision Is Only Based