MBA 658 Quiz #4 questions well
answered graded A+
Which firm in an industry is likely to have higher profits? - correct answer ✔✔Sellers with lower
costs than their competitors
Which of the following is true according to the IO perspective? - correct answer ✔✔Industry
structure determines firm conduct which in turn determines firms' performance
You own two different energy drink brands with similar elasticities: "Blue Cow" and "600-minute
energy." If you reduce the price on "Blue Cow", you can only increase your total sales if - correct
answer ✔✔Prices for "600-minute energy" are reduced
If buyers expect future price increase, they will ___________ their purchases while sellers will
__________ production - correct answer ✔✔Accelerate; delay
Firms tend to raise the price of their goods after acquiring a firm that sells a substitute because -
correct answer ✔✔The bundle has a more inelastic demand than individual goods
Owners of a parking lot are deciding whether or not to add more parking spaces to the lot. The
owners should increase parking spaces as long as: - correct answer ✔✔LRMR>LRMC
For a cruise liner deciding how to price its rooms, if the cost of overpricing is higher than the
cost of underpricing, then the management of the cruise liner should - correct answer ✔✔Price
lower than what they expect would fill capacity
answered graded A+
Which firm in an industry is likely to have higher profits? - correct answer ✔✔Sellers with lower
costs than their competitors
Which of the following is true according to the IO perspective? - correct answer ✔✔Industry
structure determines firm conduct which in turn determines firms' performance
You own two different energy drink brands with similar elasticities: "Blue Cow" and "600-minute
energy." If you reduce the price on "Blue Cow", you can only increase your total sales if - correct
answer ✔✔Prices for "600-minute energy" are reduced
If buyers expect future price increase, they will ___________ their purchases while sellers will
__________ production - correct answer ✔✔Accelerate; delay
Firms tend to raise the price of their goods after acquiring a firm that sells a substitute because -
correct answer ✔✔The bundle has a more inelastic demand than individual goods
Owners of a parking lot are deciding whether or not to add more parking spaces to the lot. The
owners should increase parking spaces as long as: - correct answer ✔✔LRMR>LRMC
For a cruise liner deciding how to price its rooms, if the cost of overpricing is higher than the
cost of underpricing, then the management of the cruise liner should - correct answer ✔✔Price
lower than what they expect would fill capacity
