Question 1

​For jointly owned substitute products,cannibalization leads to MR______MC

Accepted Answer

A) ​Being higher than 
B) Being lower than 
C) Equaling 
D) ​None of the above 
A) ​Being higher than 
B) Being lower than 
C) Equaling 
D) ​None of the above

Question 2

Owners of a parking lot are deciding whether or not to add more parking spaces to the lot.The owners should increase parking spaces as long as:​

Accepted Answer

A) LRMR=LRMC B) LRMR>LRMC C) LRMRLRMC C) LRMR

Question 3

A parking lot in a busy downtown district is experimenting with its pricing strategy to figure out where it should price its spaces.Which of the following strategies should it implement?​

Accepted Answer

A) ​Decrease parking rates if the lot fills up much earlier than 9am 
B) Increase parking rates if the lot doesn't fill up until much after 9am 
C) If the lot fills up right around 9am the price is right 
D) ​All of the above 
A) ​Decrease parking rates if the lot fills up much earlier than 9am 
B) Increase parking rates if the lot doesn't fill up until much after 9am 
C) If the lot fills up right around 9am the price is right 
D) ​All of the above

Question 4

Which of the following is FALSE?​

Accepted Answer

A) ​To reduce cannibalization among products,make the products more homogenous 
B) After acquiring a substitute product,raise prices on both the products 
C) After acquiring a complementary product,lower prices on both the products 
D) ​All of the above 
A) ​To reduce cannibalization among products,make the products more homogenous 
B) After acquiring a substitute product,raise prices on both the products 
C) After acquiring a complementary product,lower prices on both the products 
D) ​All of the above

Question 5

Which of the following is true?​

Accepted Answer

A) ​To reduce cannibalization among products,reposition a product so that it does not directly compete with the other 
B) After acquiring a substitute product,lower prices on both the products 
C) After acquiring a complementary product,raise prices on both the products 
D) ​All of the above 
A) ​To reduce cannibalization among products,reposition a product so that it does not directly compete with the other 
B) After acquiring a substitute product,lower prices on both the products 
C) After acquiring a complementary product,raise prices on both the products 
D) ​All of the above

Question 6

An online shoe retailer wants to introduce handling charges for purchases less than $50.How should the retailer pose the charges to its customers to improve its chances of being well-received?

Accepted Answer

A) ​Introduce it separately as handling 
B) Lump it together with shipping costs,but don't let the customer know until they check out 
C) Introduce it as free above $50 
D) ​Hide it from the customer 
A) ​Introduce it separately as handling 
B) Lump it together with shipping costs,but don't let the customer know until they check out 
C) Introduce it as free above $50 
D) ​Hide it from the customer

Question 7

​Given that you observe nothing but the low price of the product,you are more likely to infer that

Accepted Answer

A) ​The product is high quality 
B) The product is the highest quality possible 
C) The product is low quality 
D) ​None of the above 
A) ​The product is high quality 
B) The product is the highest quality possible 
C) The product is low quality 
D) ​None of the above

Question 8

​Which of the following is FALSE?

Accepted Answer

A) ​To reduce cannibalization among products,reposition a product so that it does not directly compete with the other 
B) After acquiring a substitute product,raise prices on both the products 
C) After acquiring a complementary product,raise prices on both the products 
D) ​All of the above 
A) ​To reduce cannibalization among products,reposition a product so that it does not directly compete with the other 
B) After acquiring a substitute product,raise prices on both the products 
C) After acquiring a complementary product,raise prices on both the products 
D) ​All of the above

Question 9

​Cover Charges
Hank's Honkytonk is a local bar and nightspot.On weekends,it requires a $5 cover charge to defray the costs of the live musical acts Hank brings in.This has worked wonderfully,as it generates capacity crowds and a long line of people waiting to enter.However,after the cost of the acts,he still loses money on the weekends.What is his marginal revenue and marginal cost of a patron on weekends and how should he attempt to fix his unprofitability problem?

Accepted Answer

Hank is not engaging in yield management

Question 10

​By focusing the customers on the price of a product,you make

Accepted Answer

A) ​The demand for the product more inelastic 
B) The customers less price sensitive to the product 
C) Both A & B 
D) ​None of the above 
A) ​The demand for the product more inelastic 
B) The customers less price sensitive to the product 
C) Both A & B 
D) ​None of the above

Question 11

​Advertising claiming superior quality of a product makes its demand

Accepted Answer

A) ​More elastic 
B) Less elastic 
C) Perfectly elastic 
D) ​None of the above 
A) ​More elastic 
B) Less elastic 
C) Perfectly elastic 
D) ​None of the above

Question 12

​Why would large department stores such as Home Depot rather face shortages than increase the prices of basic food and repair items in cases of natural disasters such as Hurricanes?

Accepted Answer

A) ​They do not want to increase sales 
B) They are maximizing sales 
C) They do not want to be viewed as unfair 
D) ​All of the above 
A) ​They do not want to increase sales 
B) They are maximizing sales 
C) They do not want to be viewed as unfair 
D) ​All of the above

Question 13

If a hot dog manufacturer acquires a bakery that primarily bakes hot dog buns,you would likely see​

Accepted Answer

A) ​Higher prices for the hot dogs but lower prices for the buns 
B) Higher prices for the buns but lower prices for the hot dogs 
C) Higher prices for both the hot dogs and the buns 
D) ​Lower prices for both the hot dogs and the buns 
A) ​Higher prices for the hot dogs but lower prices for the buns 
B) Higher prices for the buns but lower prices for the hot dogs 
C) Higher prices for both the hot dogs and the buns 
D) ​Lower prices for both the hot dogs and the buns

Question 14

Which of the following is true?​

Accepted Answer

A) ​To reduce cannibalization among products,reposition a product so that it does not directly compete with the other 
B) After acquiring a substitute product,raise prices on both the products 
C) After acquiring a complementary product,lower prices on both the products 
D) ​All of the above 
A) ​To reduce cannibalization among products,reposition a product so that it does not directly compete with the other 
B) After acquiring a substitute product,raise prices on both the products 
C) After acquiring a complementary product,lower prices on both the products 
D) ​All of the above

Question 15

​New Phone
ShorTech,is a smaller company that makes of knockoff consumer electronic devices including its Quadrant mobile phone.Sales had been doing okay for a number of months before ShorTech launched a massive advertising campaign in which it shows that its phone can do just about everything the industry leader phone can do.What change in pricing would you suggest for the Quadrant phone concurrent with the campaign?

Accepted Answer

The advertising campaign will inform a l

Question 16

An airline wants to introduce a charge for snacks on flights.Why would it not be such a good idea?​

Accepted Answer

A) ​Passengers would be less likely to buy snacks 
B) Passengers would be more likely to carry their own snacks onboard 
C) Passengers would feel nickel-and-dimed and would switch airlines 
D) ​All of the above 
A) ​Passengers would be less likely to buy snacks 
B) Passengers would be more likely to carry their own snacks onboard 
C) Passengers would feel nickel-and-dimed and would switch airlines 
D) ​All of the above

Question 17

Beverage Merger
Cott Corp.markets a portfolio of beverages,bottled waters,beverage,and coffee delivery systems for homes and offices.In November,2014,it has agreed to merge with DS Services of America,a water and coffee direct-to-consumer services provider.What is the expected effect of this merger on price-cost margins?

Accepted Answer

These two companies' products are primar

Question 18

​Given that you observe nothing but the high price of the product,you are more likely to infer that

Accepted Answer

A) ​The product is low quality 
B) The product is high quality 
C) The product is the lowest quality possible 
D) ​The product is defective 
A) ​The product is low quality 
B) The product is high quality 
C) The product is the lowest quality possible 
D) ​The product is defective

Question 19

​Acquiring a firm that sells a substitute good would make the demand curve for your original product

Accepted Answer

A) ​More inelastic 
B) More elastic 
C) Unchanged 
D) ​None of the above 
A) ​More inelastic 
B) More elastic 
C) Unchanged 
D) ​None of the above

Question 20

All of the following are true,except​

Accepted Answer

A) ​Some consumers may infer high quality from high price 
B) Low prices can indicate lower quality given that no other information is available 
C) Promotional campaigns do not affect consumer's perception on quality 
D) ​It makes more sense to raise price when advertising makes demand less elastic 
A) ​Some consumers may infer high quality from high price 
B) Low prices can indicate lower quality given that no other information is available 
C) Promotional campaigns do not affect consumer's perception on quality 
D) ​It makes more sense to raise price when advertising makes demand less elastic

For jointly owned substitute products,cannibalization leads to MR______MC

Owners of a parking lot are deciding whether or not to add more parking spaces to the lot.The owners should increase parking spaces as long as:

A parking lot in a busy downtown district is experimenting with its pricing strategy to figure out where it should price its spaces.Which of the following strategies should it implement?

Which of the following is FALSE?

Which of the following is true?

An online shoe retailer wants to introduce handling charges for purchases less than $50.How should the retailer pose the charges to its customers to improve its chances of being well-received?

Given that you observe nothing but the low price of the product,you are more likely to infer that

Which of the following is FALSE?

By focusing the customers on the price of a product,you make

Advertising claiming superior quality of a product makes its demand

Why would large department stores such as Home Depot rather face shortages than increase the prices of basic food and repair items in cases of natural disasters such as Hurricanes?

If a hot dog manufacturer acquires a bakery that primarily bakes hot dog buns,you would likely see

Which of the following is true?

An airline wants to introduce a charge for snacks on flights.Why would it not be such a good idea?

Given that you observe nothing but the high price of the product,you are more likely to infer that

Acquiring a firm that sells a substitute good would make the demand curve for your original product

All of the following are true,except

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Exam 11: More Realistic and Complex Pricing

​For jointly owned substitute products,cannibalization leads to MR______MC

Owners of a parking lot are deciding whether or not to add more parking spaces to the lot.The owners should increase parking spaces as long as:​

A parking lot in a busy downtown district is experimenting with its pricing strategy to figure out where it should price its spaces.Which of the following strategies should it implement?​

Which of the following is FALSE?​

Which of the following is true?​

An online shoe retailer wants to introduce handling charges for purchases less than $50.How should the retailer pose the charges to its customers to improve its chances of being well-received?

​Given that you observe nothing but the low price of the product,you are more likely to infer that

​Which of the following is FALSE?

​By focusing the customers on the price of a product,you make

​Advertising claiming superior quality of a product makes its demand

​Why would large department stores such as Home Depot rather face shortages than increase the prices of basic food and repair items in cases of natural disasters such as Hurricanes?

If a hot dog manufacturer acquires a bakery that primarily bakes hot dog buns,you would likely see​

Which of the following is true?​

An airline wants to introduce a charge for snacks on flights.Why would it not be such a good idea?​

​Given that you observe nothing but the high price of the product,you are more likely to infer that

​Acquiring a firm that sells a substitute good would make the demand curve for your original product

All of the following are true,except​

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

For jointly owned substitute products,cannibalization leads to MR______MC

Owners of a parking lot are deciding whether or not to add more parking spaces to the lot.The owners should increase parking spaces as long as:

A parking lot in a busy downtown district is experimenting with its pricing strategy to figure out where it should price its spaces.Which of the following strategies should it implement?

Which of the following is FALSE?

Which of the following is true?

Given that you observe nothing but the low price of the product,you are more likely to infer that

Which of the following is FALSE?

By focusing the customers on the price of a product,you make

Advertising claiming superior quality of a product makes its demand

Why would large department stores such as Home Depot rather face shortages than increase the prices of basic food and repair items in cases of natural disasters such as Hurricanes?

If a hot dog manufacturer acquires a bakery that primarily bakes hot dog buns,you would likely see

Which of the following is true?

An airline wants to introduce a charge for snacks on flights.Why would it not be such a good idea?

Given that you observe nothing but the high price of the product,you are more likely to infer that

Acquiring a firm that sells a substitute good would make the demand curve for your original product

All of the following are true,except