F11MKT300SampleMidterm-1

F11MKT300SampleMidterm-1 - Fall 2011 MKT 300 Sample Midterm...

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Fall 2011 MKT 300 Sample Midterm Notes about Actual Midterm 1. On the actual midterm, all questions will be given in multiple-choice format. 2. The midterm will last for 45 minutes. 3. There will be 31 questions, about 50% conceptual and 50% quantitative. 4. The maximum score is 30. Because I provided one additional question (to help you get closer to the maximum of 30 points), the official best answer to the each question will be final. The only exception will be for cases where the official answer is definitely wrong. 5. Please bring pencils and a calculator to the exam. 6. Please show up 5-10 minutes early to the exam. Notes about Sample Midterm 1. I provide a few examples of the conceptual questions that will be on the test. They are given in multiple-choice format. The TAs will be working with me to set the conceptual questions. 2. I also provide a sample of quantitative questions (currently not in multiple choice format on the sample exam). 3. On the actual midterm, all questions will be given in multiple-choice format. 4. I will go over the quantitative questions on the sample midterm during the lecture on 19 th October. Quantitative Questions (The questions will be in multiple choice format on the actual exam) The next 5 questions are based on the following scenario. Consider the following marketing with 10 customers. The Table below shows the Value that each customer places on Company A’s product and the reservation utility (\$X) of each customer. The unit variable cost of the product is \$20. Customer Value \$X 1 120 20 2 110 0 3 100 10 4 100 30 5 80 10 6 80 0 7 50 10

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8 40 0 9 40 0 10 40 10 1. How many customers will buy Company A’s product if it charges \$80? (Answer: 4) 2. How many customers will buy Company A’s product if it charges \$40? (Answer: 9) 3. If Company A charges \$70, what are its profits? (Answer: \$300) 4. If Company A charges \$90, what are its profits? (Answer: \$210) 5. What is the consumer surplus enjoyed by Customer 2, if the Price is \$40? (Answer:\$ 70) The next 3 questions are based on the following scenario. Consider the following Alternating Offer Bargaining Process between two CEOs, Anna and Betty. Stage 1 : Value of the business pie is \$120. Anna makes the first proposal to split the pie. Betty can Accept or Reject. If she accepts, the deal is agreed and the process ends. If she rejects, we go to Stage 2. Stage 2
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F11MKT300SampleMidterm-1 - Fall 2011 MKT 300 Sample Midterm...

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