Roughly speaking, peak-load pricing makes users at peak times pay for

Roughly speaking, peak-load pricing makes users at peak times pay for capacity while users at off-peak times pay only for operating cost.

Indicate whether the statement is true or false

ANSWER

T This statement is roughly true. But as Section 11.1 shows, it does not hold in all cases. Sometimes peak and off-peak prices must be set so users share capacity cost and capacity is fully used at all times.