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Consider the non-parametric approach: What are the optimal peak and off-peak prices? Comment on how and why they differ from the [non-parametric] flat-rate obtained above.
Consider the non-parametric approach: What are the optimal peak and off-peak prices? Comment on how and why they differ from the [non-parametric] flat-rate obtained above. Hint: Start by fixing the peak and off-peak prices at some level (e.g., at $85 and $65, respectively) and obtain the demand generated at these prices. Then vary the prices; a two-way data table can be handy
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
