Managerial Economics
Question 1
1 out of 1 points
Which of the following is an example of a “metering” strategy
Selected c.
Answer: Razors are sold at unit cost while razor blades have large profit margins
Answers: a.
A supermarket offers free parking space but charges higher for grocery
b.
A television reseller spends time making sure that the picture quality of
the bargain priced sets is fuzzy
c.
Razors are sold at unit cost while razor blades have large profit margins
d.
All of the above
Question 2
1 out of 1 points
The strategy of sorting customers into high or low value based on the amount of sales
made is known as the
Selected c.
Answer: The Metering Strategy
Answers: a.
Damaged goods strategy
b.
The willy-nilly strategy
c.
The Metering Strategy
d.
All of the above
Question 3
1 out of 1 points
Movie theatres offer senior discounts because
Selected c.
Answer:
All of the above
Answers: a.
Seniors have a more elastic demand for movie
tickets
b.
Seniors have a lower opportunity cost of time
c.
All of the above
, d.
Seniors have lower incomes
Question 4
1 out of 1 points
Amusement parks often offer coupons to the local market that are not available to tourists. This
is an example of
Selected b.
Answer:
Indirect discrimination scheme
Answers: a.
Direct discrimination scheme
b.
Indirect discrimination scheme
c.
Both of the above
d.
None of the above
Question 5
1 out of 1 points
The equilibrium outcome used in both the sequential and simultaneous move games is known as
Selected c.
Answer:
Nash equilibrium
Answers: a.
The centrality equilibrium
b.
First mover equilibrium
c.
Nash equilibrium
d.
All of the above
Question 6
1 out of 1 points
Use the following case from questions 2-10
Irene’s Dairy is deciding whether or not to enter the market for ice cream, currently
monopolized by Mattie’s Ice-cream. If it enters the market, Mattie’s can either accommodate
him and share his 10million in profits equally with Irene or fight him and cause a 5million loss
for each in a price war.
In a sequential game, given Mattie’s best response function, what would Irene’s best response be?
Selected c.
Answer:
Enter the market
Answers: a.
Not enter the market
b.
Run away
c.
Question 1
1 out of 1 points
Which of the following is an example of a “metering” strategy
Selected c.
Answer: Razors are sold at unit cost while razor blades have large profit margins
Answers: a.
A supermarket offers free parking space but charges higher for grocery
b.
A television reseller spends time making sure that the picture quality of
the bargain priced sets is fuzzy
c.
Razors are sold at unit cost while razor blades have large profit margins
d.
All of the above
Question 2
1 out of 1 points
The strategy of sorting customers into high or low value based on the amount of sales
made is known as the
Selected c.
Answer: The Metering Strategy
Answers: a.
Damaged goods strategy
b.
The willy-nilly strategy
c.
The Metering Strategy
d.
All of the above
Question 3
1 out of 1 points
Movie theatres offer senior discounts because
Selected c.
Answer:
All of the above
Answers: a.
Seniors have a more elastic demand for movie
tickets
b.
Seniors have a lower opportunity cost of time
c.
All of the above
, d.
Seniors have lower incomes
Question 4
1 out of 1 points
Amusement parks often offer coupons to the local market that are not available to tourists. This
is an example of
Selected b.
Answer:
Indirect discrimination scheme
Answers: a.
Direct discrimination scheme
b.
Indirect discrimination scheme
c.
Both of the above
d.
None of the above
Question 5
1 out of 1 points
The equilibrium outcome used in both the sequential and simultaneous move games is known as
Selected c.
Answer:
Nash equilibrium
Answers: a.
The centrality equilibrium
b.
First mover equilibrium
c.
Nash equilibrium
d.
All of the above
Question 6
1 out of 1 points
Use the following case from questions 2-10
Irene’s Dairy is deciding whether or not to enter the market for ice cream, currently
monopolized by Mattie’s Ice-cream. If it enters the market, Mattie’s can either accommodate
him and share his 10million in profits equally with Irene or fight him and cause a 5million loss
for each in a price war.
In a sequential game, given Mattie’s best response function, what would Irene’s best response be?
Selected c.
Answer:
Enter the market
Answers: a.
Not enter the market
b.
Run away
c.
