First movers 3 both of the above d none of the above

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first movers 3. both of the above d. none of the above Firms prefer excess rents in all markets in which they participate. 2. true  b. false Tuition at Pitt increases more or less each year, yet the number and quality of applicants generally  goes up.  From this we can conclude…   37. annual increase in tuition is generally revenue enhancing 38. over the range observed, tuition is price elastic 39. both of the above d.  none of the above  Recent data observes that, compared to February 2007, US sales of existing (not brand new)  houses in February 2008 were down by 23.8%.   From this, we can conclude that house prices  have most likely increased.   40. true b.   false   Consider two pricing policies, P1 and P2.  If we know they are revenue neutral, then we can  reasonably conclude both produce the same NI.   41. true b.   false   In the airline industry, we have seen many firms add fuel surcharges and fees for a second piece  of luggage.  This is probably the result of signaling. 42. true b.  false    Price skimming can be used to achieve profitability pricing objectives. 43. true   b.  false  In simple auctions such as e-Bay, the price is set by…  44. the seller    b.  the buyer 2. both of the above d.  none of the above In the mature phase of the product life cycle, we generally often flat demand, suggesting that  firms would be highly likely to use status quo pricing. 45. true b.   false If price = direct labor + direct material,  then  46. F > VQ b.  the breakeven quantity = capacity 3. breakeven cannot be achieved   d.  all of the above If breakeven quantity   capacity, then,,, 47. breakeven is possible   b.  breakeven is highly likely 4. breakeven is certain d.  the good is price elastic   Assume two price policies P1 and P2.   Further assume that the firm observes P2 is revenue  enhancing and the firm is able to achieve it with no increase or decrease in variable or fixed costs.  Given just this information, our best guess is that…  (this is a difficult question)
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3. P2 produces a lower breakeven quantity b.  P2 produces a lower CM 4. both of the above d.  none of the above In cost plus pricing, the seller’s profit goes down if his raw material costs go up. 48. true b.   false A standard assumption of the breakeven model is that the value of the dollar is constant over the  period considered.   49. true b.  false If Rival #1 in an industry uses a particular promotion mix, all other rivals will typically use the  same mix. 50. true b.  false At the start of the school year, many vendors near Pitt’s Student Union will give away free T-shirts  to sign up for a credit card.  This is an example of discounting. Threw out, but the  answer is   51. true b.   false 2.
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  • Spring '12
  • BobAtkin

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