UNC MBA 650 Final Exam | UPDATE|COMPREHENSIVE FREQUENT MOST-
TESTED QUESTIONS AND VERIFIED ANSWERS/SOLUTIONS
firm X owns both a grocery store and the parking lot 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 - answers-c. all of the above
When deciding what price to charge customers, a firm may choose to charge
different prices based on the customers'
a. age
b. willingness to pay
c. location
d. all of the above - answers-d. all of the above
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?
a. $110
b. $120
c. $130
d. $14 - answers-d. $140
The Robinson-Patman Act
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 - answers-d. all of the above
Which of the following is FALSE about indirect price 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 - answers-a. the firm is able to identify each customer's
willingness to pay
By focusing the customers on the price of a product, you 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 - answers-c. the demand for the product more elastic
large amusement parks charge entrance fees rather than 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 - answers-a. customers are more sensitive to paying a fee
per ride
A local restaurant increases the prices on its burgers as 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 - answers-a. the promotional campaign featured how much
better their burgers are
Firms can practice indirect price discrimination by
a. Offering volume discounts
b. Using two-part pricing
c. Offering a bundle containing a number of units
d. All of the above - answers-d. all of the above
for direct price discrimination to work, the firm
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 - answers-d. all of the above
for a retailer buying from a wholesaler, volume discounts do not violate the
Robinson-Patman act because
a. to sell larger volumes, the retailer himself has to offer discounts
TESTED QUESTIONS AND VERIFIED ANSWERS/SOLUTIONS
firm X owns both a grocery store and the parking lot 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 - answers-c. all of the above
When deciding what price to charge customers, a firm may choose to charge
different prices based on the customers'
a. age
b. willingness to pay
c. location
d. all of the above - answers-d. all of the above
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?
a. $110
b. $120
c. $130
d. $14 - answers-d. $140
The Robinson-Patman Act
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 - answers-d. all of the above
Which of the following is FALSE about indirect price 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 - answers-a. the firm is able to identify each customer's
willingness to pay
By focusing the customers on the price of a product, you 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 - answers-c. the demand for the product more elastic
large amusement parks charge entrance fees rather than 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 - answers-a. customers are more sensitive to paying a fee
per ride
A local restaurant increases the prices on its burgers as 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 - answers-a. the promotional campaign featured how much
better their burgers are
Firms can practice indirect price discrimination by
a. Offering volume discounts
b. Using two-part pricing
c. Offering a bundle containing a number of units
d. All of the above - answers-d. all of the above
for direct price discrimination to work, the firm
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 - answers-d. all of the above
for a retailer buying from a wholesaler, volume discounts do not violate the
Robinson-Patman act because
a. to sell larger volumes, the retailer himself has to offer discounts
