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​For Products Like Parking Lots and Hotels,costs of Building Capacity

Question 71

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

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