What is the Customer Acquisition Cost?
a. Total cost of customers
b. Average cost per customer
c. The marginal cost of acquiring another customer
d. All of the above
QUESTION 2For direct price discrimination to work
a. The firm must be able to identify the members of the low value group
b. The firm must charge a single price to all its customers
c. The firm need not worry about any arbitrage since all its customers are charged the same price
d. The firm should charge a higher price to those customers with the most elastic demand
QUESTION 3The main difficulty in applying marginal analysis is
a. calculating total cost
b. determining which costs and revenues are relevant to a particular decision
c. calculating average cost
d. All of the above
QUESTION 4For direct price discrimination to work,
a. The firm need not be able to identify members of the low-value group
b. The firm must charge a single price to all its customers
c. The firm need not worry about any arbitrage since all its customers are charged the same price
d. None of the above
QUESTION 5You own a tract of trees and are deciding whether to harvest them now or next year. If you harvest them now, you can invest the proceeds and get a return of 5 on your investment. What should you do?
a. Let the trees grow as long as their dollar worth increases by more than 5
b. Let the trees grow
c. Cut down the trees, and sell them
d. Let the trees grow as long as their dollar worth increases by less than 5
QUESTION 6For 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
QUESTION 7Food Fanatics caters meals where their cost for producing an extra meal is 20 . Each of their meals is standard and sells for 25 . At this rate what should the company do?
a. Produce more meals and increase their profit
b. Produce fewer meals and increase their profit
c. Not change production
d. None of the above
Quick Reply
