2008 MCE Quiz-3-01 (Sample Spring 2007 Quiz 3)--Answers-02

2008 MCE Quiz-3-01 (Sample Spring 2007 Quiz 3)--Answers-02...

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Managing in Complex Environments    QUIZ #3           Name:_________________________________ Spring semester, 2007 Professor Atkin My lecture time is: _____ ID#   _________________________________ This closed-book, closed-note quiz has 35 3-point questions to be answered on optical scan sheets.  To get  a grade, you must return (a) the quiz and (b) the answer sheet.  Good luck! 1. Assume two pizza parlors “locked” into such extreme price competition that neither generates a profit.  The owners meet and agree not to continue to drop price in order that they can both survive.  This is  most likely an example of explicit collusion. A a. true b.  false   2. Excess rents are typically observed for premium-pricers but not for discounters.  B a. true b.  false 3. Assume that iTunes sells songs for $.99.  Further assume it drops the price to $ .89 and observes an  increase in quantity sold.  Given just this information, we would expect that… D a. the new price policy is revenue enhancing b.  the new price policy would increase net income c. both of the above d.  none of the above  4. Whole Foods has recently increased the prices of their prepared sandwiches by about 10%.  Assume  that quantity sold decreased by about 2%.  From just this information, we can conclude that… A a. their sandwiches are price elastic products b. the new price policy is revenue neutral c. both of the above d.  none of the above 5. A target return is a profit-maximizing price strategy. B a. true 
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2008 MCE Quiz-3-01 (Sample Spring 2007 Quiz 3)--Answers-02...

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