Bank id 69050 type multiple choice correct if you

This preview shows page 10 - 13 out of 15 pages.

QUESTION:17[QUESTION BANK ID:69050]MULTIPLE CHOICECORRECTIf you suspect collusion in auctions, what should you NOT do? TYPE:A Hold open auctionsB Hold large, infrequent auctionsC Keep bidding information confidentialD Reward purchasing agents for low price
QUESTION:18[QUESTION BANK ID:93268]TYPE:MULTIPLE CHOICECORRECTThe demand for insurance arises from people who are
Page 10 of 15Bisk
QUESTION:19[QUESTION BANK ID:55294]TYPE:MULTIPLE CHOICECORRECTA suntan lotion company is interested in expanding to another market. In Miami, there is a 60% chance of selling 5,000 units at a $5 profit/unit, a 20% chance of selling 4,000 at a $8 profit/unit, and a 20% chance of losing $5,000. In Las Vegas, there is a 70% chance of selling 5,000 units at a $6 profit/unit, a 20% chance of selling 4,000 at a $7 profit/unit, and a 10% chance of losing $5,000. Finally, in San Diego, there is a 40% chance of selling 8,000 units at a $9 profit/unit, a 20% chance of selling 4,000 at a $9 profit/unit, and a 40% chance of losing $20,000. To enter each market there is a cost of $15,000. What market should the company enter?
QUESTION:20[QUESTION BANK ID:37567]TYPE:MULTIPLE CHOICECORRECTPage 11 of 15
6/24/2018...
You are considering entry into a market in which there is currently only one producer (incumbent). Entry will require $20k in fixed costs per year (avoidable at the end of each year). If you enter, the incumbent can take one of two strategies, price low or price high. If they price high, then you expect a $60k profit per year. If they price low, then you expect a $20k loss per year. You should enter if you believe: A Demand is inelasticB The probability that the incumbent will price low is greater than 0.75C The probability that the incumbent will price low is less than 0.75D The entry decision depends on the size of the market
QUESTION:21[QUESTION BANK ID:80058]TYPE:MULTIPLE CHOICECORRECTThe owner of Bob’s Breakfast just bought Nancy’s Famous Breakfast across the street. They offer the same breakfast items on the menu. The demand for Bob’s Breakfast is more elastic than Nancy’s Famous Breakfast. What should the owner do?
Page 12 of 15Bisk6/24/2018...

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture