Shifting demand from peak to off-peak periods is beneficial if the discount given during the off-peak period

Question:

Shifting demand from peak to off-peak periods is beneficial if the discount given
during the off-peak period is more than offset by the decrease in cost because of a larger peak.
during the off-peak period is more than offset by the decrease in cost because of a smaller peak.

during the peak period is more than offset by the decrease in cost because of a smaller peak.
during the peak period is more than offset by the decrease in cost because of a larger peak.

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