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Final - LUTHER SETZER Your test grade is 76 percent The...

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LUTHER SETZER Your test grade is 76 percent The professor has configured this test to allow students to review: z Questions answered incorrectly. z Questions answered correctly. z Students answers. z Correct answers. Question 1 - Multiple Choice ID: 5155730 Correct Question: A video store believes there are two equally sized consumer groups with different values for two DVDs as follows: Segment 1 values DVD A at $10 and DVD B at $8 Segment 2 values DVD A at $4 and DVD B at $12 There are estimated to be 50 consumers in each group. The store currently has 100 of each DVD on hand. It paid $10 for each DVD. If distributor for $4 each. To maximize profit contribution from the sale (or return) of these DVDs the store should Set a standard price of $8 for each DVD Set a price of $10 for A and $12 for B Offer A and B together for a price of $16 Offer A and B together for a price of $18 None of the above Question 2 - Multiple Choice ID: 5155729 - The correct answer has been circled. Question: A bidders' value for a good may be low ($2), medium ($5), or high ($7). There are an equal number of potential bidders havin auction at which the good is offered. The possible outcomes of the auction are listed below. What is the best estimate of the expected re minimum bid increment? $4.11
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$3.99 $3.56 $5.00 Question 3 - Multiple Choice ID: 5155737 Correct Question: If you are planning a common value auction and suspect that collusion may occur, which of the following should you NOT do? Hold one large auction instead of several small auctions Hold a sealed bid auction instead of an open auction Provide additional information about the products to the potential bidders Publish a list of the people that you expect to attend the auction Question 4 - Multiple Choice ID: 5155773 - The correct answer has been circled. Question: The owner of Bob’s Breakfast just bought Nancy’s Famous Breakfast across the street. They offer the same breakfast items o more elastic than Nancy’s Famous Breakfast. What should the owner do? Reduce the prices at Nancy’s Famous Breakfast Raise the prices at Bob’s Breakfast Raise the prices at both restaurants equally Raise the prices at both restaurants, but raise the price of Bob’s Breakfast more Question 5 - Multiple Choice ID: 5155756 Correct Question: If you suspect collusion in auctions, what should you NOT do?
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