If the company plans to produce 5000 units of output, is using the competitor's technology a good idea?
a. Yes
b. No
c. It does not matter, at 5000 units you are indifferent between the two technologies
d. None of the above
QUESTION 2Circle of Crust Pie Five Pizzas has a frequent purchaser program, called Circle of Crust, in which patrons earn points with every purchase. With enough points, the patron's next purchase is free. How does this program alter customer decisions?
QUESTION 3What is the total cost, at the level of production where Pastry Paradise is indifferent between which technology is used?
a. 1750
b. 1000
c. 1500
d. 2000
QUESTION 4Buy 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?
QUESTION 5If Pastry Paradise takes over Sweet Tooth, at what level of production would it be indifferent between which technology is used.
a. 500
b. 750
c. 250
d. 125
QUESTION 6Which of the following are ways to sell a customer additional units without dropping the price on previous purchases
a. Offer quantity discounts
b. Offer two-part pricing ex: membership fees
c. Bundle the goods together
d. All of the above
QUESTION 7If the company plans to produce 9 units, which technology should the firm choose?
a. Technology A
b. Technology B
c. Either technology because they are equally cost efficient
d. Need more information
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