Question 1

Brenda's Bakery started selling coffee along with pastries.In order to increase total sales she should

Accepted Answer

A) ​Increase the prices on coffee 
B) Decrease the price on pastries 
C) Increase the price of pastries 
D) ​Shut down 
A) ​Increase the prices on coffee 
B) Decrease the price on pastries 
C) Increase the price of pastries 
D) ​Shut down

Question 2

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

Accepted Answer

A) ​Increase your chances of engaging in a price war with your competitors 
B) Make the customers more price sensitive to the product 
C) Make the demand for the product more elastic 
D) ​All of the above 
A) ​Increase your chances of engaging in a price war with your competitors 
B) Make the customers more price sensitive to the product 
C) Make the demand for the product more elastic 
D) ​All of the above

Question 3

​Prospect theory implies that consumers are motivated by

Accepted Answer

A) ​The actual price level 
B) The distance of the price from the reference price 
C) All of the above 
D) ​None of the above 
A) ​The actual price level 
B) The distance of the price from the reference price 
C) All of the above 
D) ​None of the above

Question 4

​A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value.The shoe manufacturer believes that the advertisement will make

Accepted Answer

A) ​The demand for its product less elastic 
B) His customers less price sensitive 
C) Him able to raise prices 
D) ​None of the above 
A) ​The demand for its product less elastic 
B) His customers less price sensitive 
C) Him able to raise prices 
D) ​None of the above

Question 5

For a cruise liner deciding how to price its rooms,if the cost of overpricing is lower than the cost of underpricing,then the management of the cruise liner should​

Accepted Answer

A) ​Price lower than what they expect would fill capacity 
B) Price higher than what they expect would fill capacity 
C) Price such that they would expect to just fill capacity 
D) ​None of the above 
A) ​Price lower than what they expect would fill capacity 
B) Price higher than what they expect would fill capacity 
C) Price such that they would expect to just fill capacity 
D) ​None of the above

Question 6

The owner of a recently built cruise ship is deciding how to price its rooms.What advice would you give the owner?​

Accepted Answer

A) Since MRMC,price to fill capacity D) Both A&C A) Since MRMC,price to fill capacity D) Both A&C

Question 7

​Firm X owns both a grocery store and the parking lot outside the grocery store.In order to increase the traffic at the store it must

Accepted Answer

A) ​Decrease the prices on the goods sold in the store 
B) Decrease the parking rates 
C) All of the above 
D) ​None of the above 
A) ​Decrease the prices on the goods sold in the store 
B) Decrease the parking rates 
C) All of the above 
D) ​None of the above

Question 8

​Upon acquiring a complement the inter-relatedness of demand leads to,MR________

Accepted Answer

A) ​Rising 
B) Falling 
C) Staying constant 
D) ​None of the above 
A) ​Rising 
B) Falling 
C) Staying constant 
D) ​None of the above

Question 9

​Firm X owns both a grocery store and the parking lot outside the grocery store.In order to increase the traffic at the store the owners of the store should

Accepted Answer

A) ​Increase the prices on the goods sold in the store 
B) Increase the parking rates 
C) All of the above 
D) ​None of the above 
A) ​Increase the prices on the goods sold in the store 
B) Increase the parking rates 
C) All of the above 
D) ​None of the above

Question 10

​In a multi-product firm,cannibalization is

Accepted Answer

A) ​An increase in the quality of both the brand's products 
B) A decrease in the quality of both the brands products 
C) An increase in both the brand's sales 
D) ​An increase in one of the brand's sales due to the decrease in sales of the other. 
A) ​An increase in the quality of both the brand's products 
B) A decrease in the quality of both the brands products 
C) An increase in both the brand's sales 
D) ​An increase in one of the brand's sales due to the decrease in sales of the other.

Question 11

​For products like parking lots and hotels,costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints.Therefore,

Accepted Answer

A) If SRMR>SRMC at capacity,then the firms should price to fill capacity B) If SRMRLRMC at capacity,then the firms should price to fill capacity D) If LRMR>LRMC at capacity,then the firms should price to fill capacity A) If SRMR>SRMC at capacity,then the firms should price to fill capacity B) If SRMRLRMC at capacity,then the firms should price to fill capacity D) If LRMR>LRMC at capacity,then the firms should price to fill capacity

Question 12

​After firm A acquired firm B,it raised the prices for the goods produced by both firms.This can increase profits if those goods are

Accepted Answer

A) ​Substitutes 
B) Complements 
C) Not related 
D) ​None of the above 
A) ​Substitutes 
B) Complements 
C) Not related 
D) ​None of the above

Brenda's Bakery started selling coffee along with pastries.In order to increase total sales she should

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

Prospect theory implies that consumers are motivated by

A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value.The shoe manufacturer believes that the advertisement will make

For a cruise liner deciding how to price its rooms,if the cost of overpricing is lower than the cost of underpricing,then the management of the cruise liner should

The owner of a recently built cruise ship is deciding how to price its rooms.What advice would you give the owner?

Firm X owns both a grocery store and the parking lot outside the grocery store.In order to increase the traffic at the store it must

Upon acquiring a complement the inter-relatedness of demand leads to,MR________

Firm X owns both a grocery store and the parking lot outside the grocery store.In order to increase the traffic at the store the owners of the store should

In a multi-product firm,cannibalization is

For products like parking lots and hotels,costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints.Therefore,

After firm A acquired firm B,it raised the prices for the goods produced by both firms.This can increase profits if those goods are

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

Brenda's Bakery started selling coffee along with pastries.In order to increase total sales she should

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

​Prospect theory implies that consumers are motivated by

​A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value.The shoe manufacturer believes that the advertisement will make

For a cruise liner deciding how to price its rooms,if the cost of overpricing is lower than the cost of underpricing,then the management of the cruise liner should​

The owner of a recently built cruise ship is deciding how to price its rooms.What advice would you give the owner?​

​Firm X owns both a grocery store and the parking lot outside the grocery store.In order to increase the traffic at the store it must

​Upon acquiring a complement the inter-relatedness of demand leads to,MR________

​Firm X owns both a grocery store and the parking lot outside the grocery store.In order to increase the traffic at the store the owners of the store should

​In a multi-product firm,cannibalization is

​For products like parking lots and hotels,costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints.Therefore,

​After firm A acquired firm B,it raised the prices for the goods produced by both firms.This can increase profits if those goods are

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

Prospect theory implies that consumers are motivated by

A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value.The shoe manufacturer believes that the advertisement will make

For a cruise liner deciding how to price its rooms,if the cost of overpricing is lower than the cost of underpricing,then the management of the cruise liner should

The owner of a recently built cruise ship is deciding how to price its rooms.What advice would you give the owner?

Firm X owns both a grocery store and the parking lot outside the grocery store.In order to increase the traffic at the store it must

Upon acquiring a complement the inter-relatedness of demand leads to,MR________

Firm X owns both a grocery store and the parking lot outside the grocery store.In order to increase the traffic at the store the owners of the store should

In a multi-product firm,cannibalization is

For products like parking lots and hotels,costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints.Therefore,

After firm A acquired firm B,it raised the prices for the goods produced by both firms.This can increase profits if those goods are