Question 1

When the NCAA basketball tournament will only sell tickets to all three games held at a given site as a package,it is practicing:

Accepted Answer

A)  first-degree price discrimination. 
B)  second-degree price discrimination. 
C)  third-degree price discrimination. 
D)  markup pricing. 
E)  tying. 
A)  first-degree price discrimination. 
B)  second-degree price discrimination. 
C)  third-degree price discrimination. 
D)  markup pricing. 
E)  tying.

Question 2

The reservation prices,in dollars,for three classes of demanders (A,B,and C)for two restaurants (1 and 2)are given in the following table.What is the maximum revenue that can be generated by setting a bundled price for the two restaurants?

Accepted Answer

A)  $49. 
B)  $45. 
C)  $36. 
D)  $84. 
E)  $60. 
A)  $49. 
B)  $45. 
C)  $36. 
D)  $84. 
E)  $60.

Question 3

The XYZ Steel Company produces its own coal for use in its production facility.The demand for steel is given by Ps = 500 - 2Qs and the total cost of producing steel is given by TCs = 175Qs,where Qs is tons of steel per week.The price of coal in a perfectly competitive market outside the firm is $250 per ton,and the total cost of producing coal is given by TCc = 40 + 5Qc2,where Qc is tons of coal per week.How much should XYZ steel charge itself for coal?

Accepted Answer

A)  $250 per ton. 
B)  $350 per ton. 
C)  $500 per ton. 
D)  $750 per ton. 
E)  $1,000 per ton. 
A)  $250 per ton. 
B)  $350 per ton. 
C)  $500 per ton. 
D)  $750 per ton. 
E)  $1,000 per ton.

Question 4

A firm has a division that produces X,whose total costs are TC = 10 + Q2 (where Q is the quantity of X).The marketing division adds its own total costs of 5 + 3Q.In the competitive external market for X,the wholesale price is $10.The transfer price of X should be:

Accepted Answer

A)  $2. 
B)  $5. 
C)  $10. 
D)  $12. 
E)  $15. 
A)  $2. 
B)  $5. 
C)  $10. 
D)  $12. 
E)  $15.

Question 5

When consumers can purchase a set of goods as a bundle or separately,then the seller is engaging in:

Accepted Answer

A)  simple bundling. 
B)  complex bundling. 
C)  performance bundling. 
D)  mixed bundling. 
E)  engaged bundling. 
A)  simple bundling. 
B)  complex bundling. 
C)  performance bundling. 
D)  mixed bundling. 
E)  engaged bundling.

Question 6

The reservation prices,in dollars,for three classes of demanders (A,B,and C)for three restaurants (1,2,and 3)are given in the following table.What is the maximum revenue that can be generated by setting a bundled price for the three restaurants?

Accepted Answer

A)  $59. 
B)  $75. 
C)  $81. 
D)  $89. 
E)  None of the above. 
A)  $59. 
B)  $75. 
C)  $81. 
D)  $89. 
E)  None of the above.

When the NCAA basketball tournament will only sell tickets to all three games held at a given site as a package,it is practicing:

The reservation prices,in dollars,for three classes of demanders (A,B,and C)for two restaurants (1 and 2)are given in the following table.What is the maximum revenue that can be generated by setting a bundled price for the two restaurants?

A firm has a division that produces X,whose total costs are TC = 10 + Q² (where Q is the quantity of X).The marketing division adds its own total costs of 5 + 3Q.In the competitive external market for X,the wholesale price is $10.The transfer price of X should be:

When consumers can purchase a set of goods as a bundle or separately,then the seller is engaging in:

The reservation prices,in dollars,for three classes of demanders (A,B,and C)for three restaurants (1,2,and 3)are given in the following table.What is the maximum revenue that can be generated by setting a bundled price for the three restaurants?

Introduction

Demand Theory

Consumer Behavior and Rational Choice

Estimating Demand Functions

Production Theory

The Analysis of Costs

Perfect Competition

Monopoly and Monopolistic Competition

Managerial Use of Price Discrimination

Oligopoly

Game Theory

Auctions

Risk Analysis

Principalagent Issues and Managerial Compensation

Adverse Selection

Government and Business

Optimization Techniques

Appendix Problems

Filters

Exam 10: Bundling and Intrafirm Pricing

When the NCAA basketball tournament will only sell tickets to all three games held at a given site as a package,it is practicing:

The reservation prices,in dollars,for three classes of demanders (A,B,and C)for two restaurants (1 and 2)are given in the following table.What is the maximum revenue that can be generated by setting a bundled price for the two restaurants?

A firm has a division that produces X,whose total costs are TC = 10 + Q2 (where Q is the quantity of X).The marketing division adds its own total costs of 5 + 3Q.In the competitive external market for X,the wholesale price is $10.The transfer price of X should be:

When consumers can purchase a set of goods as a bundle or separately,then the seller is engaging in:

The reservation prices,in dollars,for three classes of demanders (A,B,and C)for three restaurants (1,2,and 3)are given in the following table.What is the maximum revenue that can be generated by setting a bundled price for the three restaurants?

Introduction

Demand Theory

Consumer Behavior and Rational Choice

Estimating Demand Functions

Production Theory

The Analysis of Costs

Perfect Competition

Monopoly and Monopolistic Competition

Managerial Use of Price Discrimination

Oligopoly

Game Theory

Auctions

Risk Analysis

Principalagent Issues and Managerial Compensation

Adverse Selection

Government and Business

Optimization Techniques

Appendix Problems

Filters

A firm has a division that produces X,whose total costs are TC = 10 + Q² (where Q is the quantity of X).The marketing division adds its own total costs of 5 + 3Q.In the competitive external market for X,the wholesale price is $10.The transfer price of X should be: