Question: Peak Load Pricing Simulation In Exercise 1.6, we saw that peak load pricing can increase profitability by leveling use between peak and off-peak periods (thereby
Peak Load Pricing Simulation In Exercise 1.6, we saw that peak load pricing can increase profitability by leveling use between peak and off-peak periods (thereby reducing the need for expensive capacity). In this exercise, we examine how uncertain demand influences our results. Suppose that the peak and off-peak demand levels from
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