When Considering the Purchase of a Large Central System,such as Power

Multiple Choice

When considering the purchase of a large central system,such as power generation or computer networks,firms have to decide how big a system to acquire and whether,and,if so,how to charge users for it subsequently.Which is true? $\begin{array}{llcc}\text { Charge } & \text { Lirely consequence }\end{array}$

a. $\begin{array}{llcc}\text { None } & \text { Firm acquires more capacity than needed }\end{array}$

b. $\begin{array}{llcc}\text { Full cost } & \text { Demand for resource equals capacity } \end{array}$

c. $\begin{array}{llcc}\text { Depreciation only } & \text { Firm acquires less capacity than needed } \end{array}$

d. $\begin{array}{llcc}\text { Depreciation only } & \text { Demand for resource equals capacity }\end{array}$

e. $\begin{array}{llcc}\text { None of the above}&\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D
E) Option E