Electric power companies often use expensive generators called "peakers" rather than expand their "baseload" equipment, to meet peak demand. The power companies' baseload equipment is a (fixed/variable) cost while peakers are a (fixed/variable) cost. Compared to baseload equipment, peakers are more expensive to run but much cheaper to buy. Thus, using a peaker moves a company (to a new/along the same) cost curve. We assume companies are rational implying they (minimize costs/maximize costs/maximize revenues/minimize profits). As such, handling short bursts of demand with peakers rather than expanding baseload equipment implies the companies produce (along/beyond) their LRAC prior to peaks and then produce (along/above) their LRAC during peaks