Multiple Choice
For products like parking lots and hotels,costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints.Therefore,
A) If SRMR>SRMC at capacity,then the firms should price to fill capacity
B) If SRMR<SRMC at capacity,then the firms should price to fill capacity
C) If LRMR>LRMC at capacity,then the firms should price to fill capacity
D) If LRMR>LRMC at capacity,then the firms should price to fill capacity
Correct Answer:

Verified
Correct Answer:
Verified
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