Question 1

​Which of the following is not an example of price discrimination?

Accepted Answer

A) ​Senior citizen discount at the movies 
B) Grocery coupons 
C) Shipping a package further costs more 
D) ​Charging a higher price for ice-cream during the summer and a lower price in the winter 
A) ​Senior citizen discount at the movies 
B) Grocery coupons 
C) Shipping a package further costs more 
D) ​Charging a higher price for ice-cream during the summer and a lower price in the winter

Question 2

​Use the following table for question
  
-​Given that the firm only chooses to sell the high-end professional series,how should it price its product?

Accepted Answer

A) ​Price low,sell to both users 
B) Price high,sell only to the professional chefs 
C) Price low,sell only to the professional chefs 
D) ​Price high,sell only to the home users 
A) ​Price low,sell to both users 
B) Price high,sell only to the professional chefs 
C) Price low,sell only to the professional chefs 
D) ​Price high,sell only to the home users

Question 3

​Use the following table for question
  
-​How much would the firm make in revenue if it prices both its products successfully?

Accepted Answer

A) ​$110 
B) $120 
C) $130 
D) ​$140 
A) ​$110 
B) $120 
C) $130 
D) ​$140

Question 4

​Which of the following would not be illegal according to the Robinson-Patman Act

Accepted Answer

A) ​"Party Packers" getting 10cents off every pack of ribbon they buy after 1000 units 
B) "Fred's Farms" offering 50 cents off a crate of strawberries to retailers to match other suppliers with similar rates 
C) "Sam's Sandwiches" receiving 5 cents off per pound of cheese 
D) ​All of the above 
A) ​"Party Packers" getting 10cents off every pack of ribbon they buy after 1000 units 
B) "Fred's Farms" offering 50 cents off a crate of strawberries to retailers to match other suppliers with similar rates 
C) "Sam's Sandwiches" receiving 5 cents off per pound of cheese 
D) ​All of the above

Question 5

​One reason demand curves slope downwards is

Accepted Answer

A) ​Marginal value increases with each purchase 
B) Marginal value declines with each purchase 
C) Total value declines with each purchase 
D) ​All of the above 
A) ​Marginal value increases with each purchase 
B) Marginal value declines with each purchase 
C) Total value declines with each purchase 
D) ​All of the above

Question 6

​A firm practicing direct price discrimination will charge a higher price to

Accepted Answer

A) ​Consumers known to have an elastic demand 
B) All consumers 
C) Consumers known to have an inelastic demand 
D) ​Consumers known to have a unitary elastic demand 
A) ​Consumers known to have an elastic demand 
B) All consumers 
C) Consumers known to have an inelastic demand 
D) ​Consumers known to have a unitary elastic demand

Question 7

​In which of the following cases does the Robinson-Patman act not apply?

Accepted Answer

A) ​There are no cost differences to serving different groups 
B) Discounts are never offered to meet competition 
C) The industry does not engage in promotional allowances 
D) ​All of the above 
A) ​There are no cost differences to serving different groups 
B) Discounts are never offered to meet competition 
C) The industry does not engage in promotional allowances 
D) ​All of the above

Question 8

​Use the following table for question
  
-Given that the firm wants to sell both the versions,how much surplus does buying the no-name brand give the professional chefs?

Accepted Answer

A) ​$30 
B) $40 
C) $50 
D) ​$60 
A) ​$30 
B) $40 
C) $50 
D) ​$60

Question 9

​Price discrimination is

Accepted Answer

A) ​The practice of charging different prices to different individual buyers or customer groups 
B) The practice of differentiating the product to make demand less elastic 
C) The practice of deciding a single price to be charged to customers 
D) ​Always illegal 
A) ​The practice of charging different prices to different individual buyers or customer groups 
B) The practice of differentiating the product to make demand less elastic 
C) The practice of deciding a single price to be charged to customers 
D) ​Always illegal

Question 10

Which of the following is FALSE about indirect price discrimination​

Accepted Answer

A) ​The firm is able to identify each customer's willingness to pay 
B) The firm is able to charge different prices to the different value customers 
C) The firm is be able to prevent arbitrage 
D) ​All of the above 
A) ​The firm is able to identify each customer's willingness to pay 
B) The firm is able to charge different prices to the different value customers 
C) The firm is be able to prevent arbitrage 
D) ​All of the above

Question 11

The "damaged goods" strategy refers to​

Accepted Answer

A) ​Trying to sell damaged goods to your customers 
B) Damaging the goods after they have been paid for but before the shipping 
C) Incurring additional costs to make the cheaper goods unattractive to high-value users 
D) ​Incurring additional costs to make the more expensive goods better quality 
A) ​Trying to sell damaged goods to your customers 
B) Damaging the goods after they have been paid for but before the shipping 
C) Incurring additional costs to make the cheaper goods unattractive to high-value users 
D) ​Incurring additional costs to make the more expensive goods better quality

Question 12

Advance-purchase discounts offered by airlines are an example of​

Accepted Answer

A) ​Direct price discrimination 
B) Indirect price discrimination 
C) All of the above 
D) ​None of the above 
A) ​Direct price discrimination 
B) Indirect price discrimination 
C) All of the above 
D) ​None of the above

Question 13

​Which of the following is FALSE?

Accepted Answer

A) ​The Robinson-Patman act is a part of the antitrust laws 
B) Under the Robinson-Patman act it is illegal to give a price discount on goods sold to another business 
C) Under the Robinson-Patman act,it is illegal to give a price discount on goods sold to final customers 
D) Under the Robinson-Patman act,the only discount allowed is the one based on difference in servicing costs of different groups 
A) ​The Robinson-Patman act is a part of the antitrust laws 
B) Under the Robinson-Patman act it is illegal to give a price discount on goods sold to another business 
C) Under the Robinson-Patman act,it is illegal to give a price discount on goods sold to final customers 
D) Under the Robinson-Patman act,the only discount allowed is the one based on difference in servicing costs of different groups

Question 14

​Firms can practice indirect price discrimination by

Accepted Answer

A) ​Offering volume discounts 
B) Using two-part pricing 
C) Offering a bundle containing a number of units 
D) ​All of the above 
A) ​Offering volume discounts 
B) Using two-part pricing 
C) Offering a bundle containing a number of units 
D) ​All of the above

Question 15

​Buy Airline Tickets over the Weekend
A recent study by economists Steven Puller and Lisa Taylor found that airline tickets purchased over the weekend were priced 5% lower on average.Why would airlines charge lower prices to customers making bookings on the weekend?

Accepted Answer

This is a price discrimination scheme.We

Question 16

​Dremel Tools
Dremel sells a high speed rotary tool appropriate for many workshop projects.They have developed hundreds of accessories and bits for their tools for many different applications.Why is the markup on the accessories higher than the markup on the rotary tools?

Accepted Answer

Dremel is engaging in a form of metering

Question 17

​A firm practicing direct price discrimination will charge lower prices to

Accepted Answer

A) ​Consumers with an elastic demand 
B) All consumers 
C) Consumers known to have an inelastic demand 
D) ​Consumers known to have a unitary elastic demand 
A) ​Consumers with an elastic demand 
B) All consumers 
C) Consumers known to have an inelastic demand 
D) ​Consumers known to have a unitary elastic demand

Question 18

When a grocery store offers discount coupons in Sunday papers,it is trying to ​

Accepted Answer

A) ​Price discriminate 
B) Undercut its competition 
C) Reward the frequent readers 
D) ​Provide a social service 
A) ​Price discriminate 
B) Undercut its competition 
C) Reward the frequent readers 
D) ​Provide a social service

Question 19

​Use the following table for question
  
-Given that the firm wants to sell both the versions,how should it price its products to have the users self-sort themselves profitably?

Accepted Answer

A) ​No-name $60;High-end $130 
B) No-name $60;High-end $100 
C) No-name $40;High-end $100 
D) ​No-name $40;High end $130 
A) ​No-name $60;High-end $130 
B) No-name $60;High-end $100 
C) No-name $40;High-end $100 
D) ​No-name $40;High end $130

Question 20

​Which of the following is an example of price discrimination?

Accepted Answer

A) ​Seniors paying a lower price for tickets at movie theatres 
B) Students paying discounted rates on travel 
C) Tourists paying higher prices on local attractions than locals 
D) ​All of the above 
A) ​Seniors paying a lower price for tickets at movie theatres 
B) Students paying discounted rates on travel 
C) Tourists paying higher prices on local attractions than locals 
D) ​All of the above

Exam 12: Direct Price Discrimination

​Which of the following is not an example of price discrimination?

​Use the following table for question -​Given that the firm only chooses to sell the high-end professional series,how should it price its product?

​Use the following table for question -​How much would the firm make in revenue if it prices both its products successfully?

​Which of the following would not be illegal according to the Robinson-Patman Act

​One reason demand curves slope downwards is

​A firm practicing direct price discrimination will charge a higher price to

​In which of the following cases does the Robinson-Patman act not apply?

​Use the following table for question -Given that the firm wants to sell both the versions,how much surplus does buying the no-name brand give the professional chefs?

​Price discrimination is

Which of the following is FALSE about indirect price discrimination​

The "damaged goods" strategy refers to​

Advance-purchase discounts offered by airlines are an example of​

​Which of the following is FALSE?

​Firms can practice indirect price discrimination by

​Buy Airline Tickets over the Weekend A recent study by economists Steven Puller and Lisa Taylor found that airline tickets purchased over the weekend were priced 5% lower on average.Why would airlines charge lower prices to customers making bookings on the weekend?

​Dremel Tools Dremel sells a high speed rotary tool appropriate for many workshop projects.They have developed hundreds of accessories and bits for their tools for many different applications.Why is the markup on the accessories higher than the markup on the rotary tools?

​A firm practicing direct price discrimination will charge lower prices to

When a grocery store offers discount coupons in Sunday papers,it is trying to ​

​Use the following table for question -Given that the firm wants to sell both the versions,how should it price its products to have the users self-sort themselves profitably?

​Which of the following is an example of price discrimination?

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Which of the following is not an example of price discrimination?

Use the following table for question -Given that the firm only chooses to sell the high-end professional series,how should it price its product?

Use the following table for question -How much would the firm make in revenue if it prices both its products successfully?

Which of the following would not be illegal according to the Robinson-Patman Act

One reason demand curves slope downwards is

A firm practicing direct price discrimination will charge a higher price to

In which of the following cases does the Robinson-Patman act not apply?

Use the following table for question -Given that the firm wants to sell both the versions,how much surplus does buying the no-name brand give the professional chefs?

Price discrimination is

Which of the following is FALSE about indirect price discrimination

The "damaged goods" strategy refers to

Advance-purchase discounts offered by airlines are an example of

Which of the following is FALSE?

Firms can practice indirect price discrimination by

Buy Airline Tickets over the Weekend A recent study by economists Steven Puller and Lisa Taylor found that airline tickets purchased over the weekend were priced 5% lower on average.Why would airlines charge lower prices to customers making bookings on the weekend?

Dremel Tools Dremel sells a high speed rotary tool appropriate for many workshop projects.They have developed hundreds of accessories and bits for their tools for many different applications.Why is the markup on the accessories higher than the markup on the rotary tools?

A firm practicing direct price discrimination will charge lower prices to

When a grocery store offers discount coupons in Sunday papers,it is trying to

Use the following table for question -Given that the firm wants to sell both the versions,how should it price its products to have the users self-sort themselves profitably?

Which of the following is an example of price discrimination?