Pricing policies Essay

1. In making promises that be not guaranteed by third parties and in imposing penalties that are not enforced by third parties, only of the following are credibility-enhancing mechanisms except2. Essential components of a game include every last(predicate) of the following except3. A key to analyzing subgame perfect equilibrium schema in sequential games is 4. When airlines post prices on an electronic bulletin board at 800 a.m. each morning, the decision-makers are engaged in5. Credible promises and hostage mechanisms can support a continuous stream of cooperative exchanges except when6. Firms that have a cover charge for their customers and charge for each item they purchase as well are exhibiting7. The segmenting of customers into several small groups such as household, institutional, commercial, and industrial users, and establishing a different rate schedule for each group is cognize as8. Vacation tours to Europe invariably package visits to disparate regions cities, mou ntains, and the seaside. Bundling, a type of second degree price discrimination, is most profitable when9. Which of the following set policies best identifies when a product should be expanded, maintained, or discontinued?10. ____ is a new product pricing strategy which results in a high initial product price. This price is reduced over time as demand at the higher price is satisfied.11. Which of the following is not among the functions of contract?12. Mac trucks and their dealers would in all likelihood have an organizational form of13. Contracts are distinguished from tactical alliances by which of the following characteristics14. Which of the following are not approaches to resolving the principal-agent problem?15. When retail motorcycle dealers advertise and perform warranty repairs but do not deliver the personal selling message that Schwinn has designed as part of the marketing intent but cannot observe at less than prohibitive cost, the manufacturer has encountered a prob lem of ____.16. ____ occurs whenever a third party receives or bears cost arising from an economic movement in which the individual (or group) is not a direct participant.17. The antitrust laws regulate all of the following business decisions except ____.18. The sentiment for increased deregulation in the late 1970s and early 1980s has been felt most significantly in the price regulation of 19. The Herfindahl-Hirschman index (also shortened to just the Herfindahl index) is a rate of20. The lower the barriers to entry and exit, the more nearly a market structure fits the ____ market model.21. If the acceptance of Project A makes it impossible to accept Project B, these projects are22. Cost-benefit analysis is the public sector counterpart to ____ used in private, profit-oriented firms.23. The weights used in calculating the firms weighted-average cost of capital are mate to the proportion of debt and equity ____.24. In order to help assure that all relevant factors will be conside red, the capital-expenditure selection process should include the following stairs except25. The social rate of discount is best approximated by1. Theoretically, in a long-run cost function2. The degree of operating leverage is correspond to the ____ change in ____ divided by the ____ change in ____.3. Which of the following is not an assumption of the linear breakeven model4. In the linear breakeven model, the breakeven sales al-Quran (in dollars) can be found by multiplying the breakeven sales volume (in units) by5. In the linear breakeven model, the difference between selling price per unit and inconsistent cost per unit is referred to as6. The short-run cost function is7. The problems of asymmetric information exchange arise ultimately because8. A firm in sublimate competition would shut down when9. An experience good is one that10. In the purely competitive case, marginal revenue (MR) is equal to11. If price exceeds average costs under pure competition, ____ firms will ente r the perseverance, supply will ____, and price will be driven ____.12. Buyers anticipate that the temporary warehouse seller of unbranded computer equipment will13. What is the profit maximization point for a firm in a purely competitive environment?14. The practice by prognosticate companies of charging lower long-distance rates at night than during the day is an example of15. The demand curve facing the firm in ____ is the same as the industry demand curve.16. Declining cost industries17. Of the following, which is not an economic rationale for public utility regulation?18. When the cross elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ situation.19. Regulatory agencies engage in all of the following activities except _______.20. Barometric price leadership exists when21. A cartel is a situation where firms in the industry22. The existence of a kinked demand curve under oligopoly conditions may result in23. Some ind ustries that have rigid prices. In those industries, we tend to24. If a cartel seeks to maximize profits, the market share (or quota) for each firm should be set at a level such that the ____ of all firms is identical.25. A(n) ____ is characterized by a relatively small number of firms producing a product.