STUDENTS SUCCESS
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
ECON 3251 EXAM 3 - 2024-2025 ACTUAL EXAM COMPLETE -
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz Which of the following is FALSE?
Ans: To reduce cannibalization among products, make the products more
homogenous
Quiz For a cruise liner deciding how to price its rooms, if the cost of overpricing is
lower than the cost of under-pricing, then the management of the cruise liner should
Ans: Price higher than what they expect would fill capacity
Quiz In a multi-product firm, cannibalization is
Ans: An increase in one of the brand's sales due to the decrease in sales of the
other.
Quiz A Swiss watch company advertises its history of superior craftsmanship. The
company thinks that this will
Ans: Not impact the demand for their product
Quiz Firms should raise the prices on their goods
Ans: If it acquires a firm selling a substitute good
Quiz In October, 2014, Vintners Global Resource's (VGR) agreed to purchase M.A.
Silva. VGR is a leading manufacturer of glass bottles and packaging for wines and
M.A. Silva is a manufacturer of premium natural corks. What is the expected effect of
this merger on price-cost margins?
Ans:
Quiz For a firm to maximize total profits through price discrimination, it should
,Ans: charge a high price to high-value consumers and a low price to low-value
consumers
Quiz Use the following table for questions 58-66
Carving knives
Home users
Professional Chefs
No-name brand
$40
$70
High-end professional series
$60
$130
How much would the firm make in revenue if it prices both its products successfully?
Ans: $140
Quiz Which of the following is FALSE?
Ans: Under the Robinson-Patman act, it is illegal to give a price discount on goods
sold to final customers
Quiz The Robinson-Patman act
Ans: Is a part of the antitrust laws
Makes it illegal to give a price discount on a good sold to another business
Both A&B
Quiz It is illegal for a business to price discriminate when selling goods to other
businesses unless
Ans: Price discounts are cost-justified
Discounts are offered to meet competitors' price
Either A or B is true
Quiz Metering is
Ans: A form of indirect price discrimination
Quiz Which of the following is an example of the "metering" strategy
Ans: A doll company selling dolls at cost but charging high margins on doll
accessories
A cell phone company offers free locked in phones but charges high prices per call
Only A&B
, Quiz The __________ declared that some forms of price discrimination is illegal,
especially when it decreases competition.
Ans: Robinson-Patman Act
Quiz Use the following table for questions 50-57
Cooking Wok
Value to home users
Value to professional Chefs
No-name brand
$50
$60
High-end professional series
$70
$100
What is the maximum that the firm can charge for the no-name brand wok without
losing customers?
Ans: $50
Quiz Scenic Cinemas surveyed its audience and found that while most movie goers
prefer weekends, seniors visit on weekdays. How should the theatre respond?
Ans: Decrease prices for the weekday shows, increase prices on the weekends
Quiz Indirect price discrimination differs from direct price discrimination because
Ans: In indirect price discrimination high value consumers can sometimes still get
the low price
Quiz Use the following table for questions 58-66
Carving knives
Home users
Professional Chefs
No-name brand
$40
$70
High-end professional series
$60
$130
Given that the firm only chooses to sell the no-name brand, how should it price its
product?
Ans: Price low, sell to both users
Quiz Use the following case from questions 25-31
Two siblings, Bratty Brenda and Tattling Tina are playing a simultaneous hit and tell
game. Bratty Brenda can hit Tattling Tina or not and Tattling Tina can tattle on Bratty
Brenda or not. Relative to no hitting and no tattling, if Bratty Brenda hits Tattling Tina,
and she tattles they both experience a loss of 10. Not telling, gets Tattling Tina a
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
ECON 3251 EXAM 3 - 2024-2025 ACTUAL EXAM COMPLETE -
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz Which of the following is FALSE?
Ans: To reduce cannibalization among products, make the products more
homogenous
Quiz For a cruise liner deciding how to price its rooms, if the cost of overpricing is
lower than the cost of under-pricing, then the management of the cruise liner should
Ans: Price higher than what they expect would fill capacity
Quiz In a multi-product firm, cannibalization is
Ans: An increase in one of the brand's sales due to the decrease in sales of the
other.
Quiz A Swiss watch company advertises its history of superior craftsmanship. The
company thinks that this will
Ans: Not impact the demand for their product
Quiz Firms should raise the prices on their goods
Ans: If it acquires a firm selling a substitute good
Quiz In October, 2014, Vintners Global Resource's (VGR) agreed to purchase M.A.
Silva. VGR is a leading manufacturer of glass bottles and packaging for wines and
M.A. Silva is a manufacturer of premium natural corks. What is the expected effect of
this merger on price-cost margins?
Ans:
Quiz For a firm to maximize total profits through price discrimination, it should
,Ans: charge a high price to high-value consumers and a low price to low-value
consumers
Quiz Use the following table for questions 58-66
Carving knives
Home users
Professional Chefs
No-name brand
$40
$70
High-end professional series
$60
$130
How much would the firm make in revenue if it prices both its products successfully?
Ans: $140
Quiz Which of the following is FALSE?
Ans: Under the Robinson-Patman act, it is illegal to give a price discount on goods
sold to final customers
Quiz The Robinson-Patman act
Ans: Is a part of the antitrust laws
Makes it illegal to give a price discount on a good sold to another business
Both A&B
Quiz It is illegal for a business to price discriminate when selling goods to other
businesses unless
Ans: Price discounts are cost-justified
Discounts are offered to meet competitors' price
Either A or B is true
Quiz Metering is
Ans: A form of indirect price discrimination
Quiz Which of the following is an example of the "metering" strategy
Ans: A doll company selling dolls at cost but charging high margins on doll
accessories
A cell phone company offers free locked in phones but charges high prices per call
Only A&B
, Quiz The __________ declared that some forms of price discrimination is illegal,
especially when it decreases competition.
Ans: Robinson-Patman Act
Quiz Use the following table for questions 50-57
Cooking Wok
Value to home users
Value to professional Chefs
No-name brand
$50
$60
High-end professional series
$70
$100
What is the maximum that the firm can charge for the no-name brand wok without
losing customers?
Ans: $50
Quiz Scenic Cinemas surveyed its audience and found that while most movie goers
prefer weekends, seniors visit on weekdays. How should the theatre respond?
Ans: Decrease prices for the weekday shows, increase prices on the weekends
Quiz Indirect price discrimination differs from direct price discrimination because
Ans: In indirect price discrimination high value consumers can sometimes still get
the low price
Quiz Use the following table for questions 58-66
Carving knives
Home users
Professional Chefs
No-name brand
$40
$70
High-end professional series
$60
$130
Given that the firm only chooses to sell the no-name brand, how should it price its
product?
Ans: Price low, sell to both users
Quiz Use the following case from questions 25-31
Two siblings, Bratty Brenda and Tattling Tina are playing a simultaneous hit and tell
game. Bratty Brenda can hit Tattling Tina or not and Tattling Tina can tattle on Bratty
Brenda or not. Relative to no hitting and no tattling, if Bratty Brenda hits Tattling Tina,
and she tattles they both experience a loss of 10. Not telling, gets Tattling Tina a
