UNC MBA 650 Final Exam ACTUAL UPDATED QUESTIONS AND CORRECT
ANSWERS
By focusing the customers on the price of a product, you c. the demand for the product more elastic
make:
a. the demand for the product more inelastic
b. the customers less price sensitive to the product
c. the demand for the product more elastic
d. only B&C
large amusement parks charge entrance fees rather than a. customers are more sensitive to paying a fee per ride
fee per ride because:
a. customers are more sensitive to paying a fee per ride
b. customers are less sensitive to paying a fee per ride
c. customers view paying per ride as a smaller cost
d. none of the above
A local restaurant increases the prices on its burgers as a. the promotional campaign featured how much better their burgers are
soon as it begins a promotional campaign. Which of the
following is likely to be true?
a. the promotional campaign featured how much better
their burgers are
b. the promotional campaign focused on the value per
dollar
c. the promotional campaign made demand more elastic
d. all of the above
Firms can practice indirect price discrimination by 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
for direct price discrimination to work, the firm d. all of the above
a. must be able to identify members of the low value
group
b. charge the low value group lower prices than the rest
c. prevent the low value group from reselling their low
priced goods to higher valued group
d. all of the above
for a retailer buying from a wholesaler, volume discounts d. all of the above
do not violate the Robinson-Patman act because
a. to sell larger volumes, the retailer himself has to offer
discounts
b. to sell larger volumes, the retailer has to incur costs in
promoting the item
c. to sell larger volumes, the retailer has to hold the items
in inventory longer
d. all of the above
,firm X owns both a grocery store and the parking lot c. all of the above
outside the grocery store. In order to increase the traffic
at the store it must
a. decrease the prices on the goods sold in the store
b. decrease the parking rates
c. all of the above
d. none of the above
When deciding what price to charge customers, a firm d. all of the above
may choose to charge different prices based on the
customers'
a. age
b. willingness to pay
c. location
d. all of the above
, Carving knives d. $140
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?
a. $110
b. $120
c. $130
d. $14
The Robinson-Patman Act d. all of the above
a. is a part of the antitrust laws
b. makes it illegal to give a price discount on a good sold
to another business
c. is also known as the Anti-Chain-Store Act
d. all of the above
Which of the following is FALSE about indirect price a. the firm is able to identify each customer's willingness to pay
discrimination
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 able to prevent arbitrage
d. all of the above
When a grocery store offers discount coupons in Sunday a. price discriminate
papers, it is trying to
a. price discriminate
b. undercut its competition
c. reward the frequent readers
d. provide a social service
Which of the following is an example of the "damaged c. a catering company pays its chefs higher wages to make sure that the bargain
goods" strategy meals are just slightly burnt
a. a doll company selling dolls at cost but charging high
margins on dol accessories
b. a cell phone company offers free locked in phones but
charges high prices per call
c. a catering company pays its chefs higher wages to
make sure that the bargain meals are just slightly burnt
d. none of the above
ANSWERS
By focusing the customers on the price of a product, you c. the demand for the product more elastic
make:
a. the demand for the product more inelastic
b. the customers less price sensitive to the product
c. the demand for the product more elastic
d. only B&C
large amusement parks charge entrance fees rather than a. customers are more sensitive to paying a fee per ride
fee per ride because:
a. customers are more sensitive to paying a fee per ride
b. customers are less sensitive to paying a fee per ride
c. customers view paying per ride as a smaller cost
d. none of the above
A local restaurant increases the prices on its burgers as a. the promotional campaign featured how much better their burgers are
soon as it begins a promotional campaign. Which of the
following is likely to be true?
a. the promotional campaign featured how much better
their burgers are
b. the promotional campaign focused on the value per
dollar
c. the promotional campaign made demand more elastic
d. all of the above
Firms can practice indirect price discrimination by 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
for direct price discrimination to work, the firm d. all of the above
a. must be able to identify members of the low value
group
b. charge the low value group lower prices than the rest
c. prevent the low value group from reselling their low
priced goods to higher valued group
d. all of the above
for a retailer buying from a wholesaler, volume discounts d. all of the above
do not violate the Robinson-Patman act because
a. to sell larger volumes, the retailer himself has to offer
discounts
b. to sell larger volumes, the retailer has to incur costs in
promoting the item
c. to sell larger volumes, the retailer has to hold the items
in inventory longer
d. all of the above
,firm X owns both a grocery store and the parking lot c. all of the above
outside the grocery store. In order to increase the traffic
at the store it must
a. decrease the prices on the goods sold in the store
b. decrease the parking rates
c. all of the above
d. none of the above
When deciding what price to charge customers, a firm d. all of the above
may choose to charge different prices based on the
customers'
a. age
b. willingness to pay
c. location
d. all of the above
, Carving knives d. $140
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?
a. $110
b. $120
c. $130
d. $14
The Robinson-Patman Act d. all of the above
a. is a part of the antitrust laws
b. makes it illegal to give a price discount on a good sold
to another business
c. is also known as the Anti-Chain-Store Act
d. all of the above
Which of the following is FALSE about indirect price a. the firm is able to identify each customer's willingness to pay
discrimination
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 able to prevent arbitrage
d. all of the above
When a grocery store offers discount coupons in Sunday a. price discriminate
papers, it is trying to
a. price discriminate
b. undercut its competition
c. reward the frequent readers
d. provide a social service
Which of the following is an example of the "damaged c. a catering company pays its chefs higher wages to make sure that the bargain
goods" strategy meals are just slightly burnt
a. a doll company selling dolls at cost but charging high
margins on dol accessories
b. a cell phone company offers free locked in phones but
charges high prices per call
c. a catering company pays its chefs higher wages to
make sure that the bargain meals are just slightly burnt
d. none of the above
