The general rule to increase profits when two close complementary brands are jointly owned is
a. Increase prices for both brands
b. Decrease prices for both brands
c. Increase prices on one brand, decreasing it for the other
d. Increase prices on one brand, keeping the prices of the second brand constant
QUESTION 2Wealthy professors are more likely to shop at high end stores with shorter wait times at the cashier than poor students because
a. They value the item more than the student
b. They like wasting money
c. The opportunity cost of waiting in a cashier line is higher for professors than for undergraduate students
d. They like to show off
QUESTION 3Upon acquiring a complement the inter-relatedness of demand leads to, MR________
a. Rising
b. Falling
c. Staying constant
d. None of the above
QUESTION 4A car dealership union negotiates a contract that dramatically increases all salesmen's salaries. If one of the salesman is thinking of changing careers to be a hardware salesman, his opportunity cost
a. would not be affected
b. of becoming a hardware salesman would decrease
c. of becoming a hardware salesman would increase
d. none of the above
QUESTION 5For jointly owned substitute products, cannibalization leads to MR______MC
a. Being higher than
b. Being lower than
c. Equaling
d. None of the above
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