Businesses with fixed capacity will charge higher prices when demand is low in an effort to cover fixed costs.

Name: Businesses with fixed capacity will charge higher prices when demand is low in an effort to cover fixed costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Businesses with fixed capacity are more likely to charge higher prices when demand is high to maximize profits, not when demand is low. When demand is low, they might actually lower prices to attract more customers.

Businesses with Fixed Capacity Will Charge Higher Prices When Demand