Quiz4 ? Question 1 1 out of 1 points The general rule to increase profits when two close substitute brands are jointly owned is Selected Answer: b. Increase prices for both brands Answers: a. ...

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Quiz4
? Question 1
1 out of 1 points
The general rule to increase profits when two close substitute brands are jointly owned
is
Selected
Answer: b.
Increase prices for both brands
Answers:
a.
Increase prices on one brand, keeping the prices of the second brand
constant
b.
Increase prices for both brands
c.
Increase prices on one brand, decreasing it for the other
d.
Decrease prices for both brands
? Question 2
1 out of 1 points
Upon acquiring a complement the inter-relatedness of demand leads to, MR________
Selected
Answer: a.
Rising
Answers:
a.
Rising
b.
Falling
c.
Staying constant
d.
None of the above
? Question 3
1 out of 1 points
Acquiring a firm that sells a substitute good would make the demand curve for your
original product
Selected
Answer: a.
More inelastic
Answers:
a.
More inelastic

b.
More elastic
c.
Unchanged
d.
None of the above
? Question 4
1 out of 1 points
Firms that face capacity constraints can increase output only up to the capacity, but no
further. Therefore, firms
Selected
Answer: b.
Should price to capacity as long as MR > MC
Answers:
a.
Should price to capacity as long as MR < MC
b.
Should price to capacity as long as MR > MC
c.
Should price to capacity as long as MR = MC
d.
Should not take capacity into consideration in pricing decisions
? Question 5
1 out of 1 points
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,
Selected
Answer: d.
If SRMR>SRMC at capacity, then the firms should price to fill
capacity
Answers:
a.
If LRMR>LRMC 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 SRMR>SRMC at capacity, then the firms should price to fill

capacity
? Question 6
0 out of 1 points
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?
Answer
s: a.
Increase parking rates if the lot fills up much earlier than 9am
b.
Decrease 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 7
1 out of 1 points
For a cruise liner deciding how to price its rooms, if the cost of overpricing is higher
than the cost of underpricing, then the management of the cruise liner should
Selected
Answer: a.
Price lower than what they expect would fill capacity
Answers:
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 8
1 out of 1 points
An online shoe retailer wants to introduce handling charges for purchases less than $50.
How should the retailer pose the charges to its