Pricing policies Essay Example for Free

Pricing policies Essay 1. In making promises that are not guaranteed by third parties and in imposing penalties that are not enforced by third parties, all of the following are credibility-enhancing mechanisms except 2. Essential components of a game include all of the following except: 3. A key to analyzing subgame perfect equilibrium strategy in sequential games is 4. When airlines post prices on an electronic bulletin board at 8:00 a.m. each morning, the decision-makers are engaged in 5. Credible promises and hostage mechanisms can support a continuous stream of cooperative exchanges except when 6. Firms that have a cover charge for their customers and charge for each item they purchase as well are exhibiting 7. 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 known as: 8. Vacation tours to Europe invariably package visits to disparate regions: cities, mountains, and the seaside. Bundling, a type of second degree price discrimination, is most profitable when: 9. Which of the following pricing 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 likely have an organizational form of 13. Contracts are distinguished from tactical alliances by which of the following characteristics: 14. Which of the following are not approaches to resolving the principal-agent problem? 15. When retail bicycle dealers advertise and perform warranty repairs but do not deliver the personal selling message that Schwinn has designed as part of the marketing plan but cannot observe at less than prohibitive cost, the manufacturer has encountered a problem of ____. 16. ____ occurs whenever a third party receives or bears costs arising from an economic transaction 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 measure of 20. 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 are: 22. 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 equal to the proportion of debt and equity ____. 24. In order to help assure that all relevant factors will be considered, the capital-expenditure selection process should include the following steps except: 25. The social rate of discount is best approximated by: 1. Theoretically, in a long-run cost function: 2. The degree of operating leverage is equal to the ____ change in ____ divided by the ____ change in ____. 3. Which of the following is not an assumption of the linear breakeven model: 4. In the linear breakeven model, the breakeven sales volume (in dollars) can be found by multiplying the breakeven sales volume (in units) by: 5. In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as: 6. The short-run cost function is: 7. The problems of asymmetric information exchange arise ultimately because 8. A firm in pure competition would shut down when: 9. An experience good is one that: 10. In the purely competitive case, marginal revenue (MR) is equal to: 11. If price exceeds average costs under pure competition, ____ firms will enter the industry, supply will ____, and price will be driven ____. 12. Buyers anticipate that the temporary warehouse seller of unbranded computer equipment will 13. What is the profit maximization point for a firm in a purely competitive environment? 14. The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of: 15. The demand curve facing the firm in ____ is the same as the industry demand curve. 16. Declining cost industries 17. 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 when 21. A cartel is a situation where firms in the industry 22. The existence of a kinked demand curve under oligopoly conditions may result in 23. Some industries that have rigid prices. In those industries, we tend to 24. 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.

Religious Toleration during the Enlightenment Essay -- Enlightenment of

The Enlightenment of the 18th century evolved due to the many changes brought about by the Scientific Revolution. With all of the new scientific discoveries, new thought processes were developed. The scientists of the Scientific Revolution brought about revolutionary change. These scientists inspired the philosophes of the Enlightenment to challenge the ways of the "Old Regime" and question the ideas of the church. Philosophers such as Francois Voltaire, Jean-Jacques Rousseau, and John Locke published their controversial ideas and these ideas along with some important political action, helped to mold a new type of society. The new society was one that tolerated different religious beliefs. "The minds of men, abandoning the old disciplines and contentions of theology, turned to what they called "natural philosophy," namely, the faith in individual reason rather than in divine revelation; they welcomed the excitement offered by the ever widening opportunities for discovery and commerce and by the prospect of immeasurable progress owing to the inventions of science and technology and the spread of education."1 Religious toleration during the Age of Enlightenment was ultimately affected by changes in the Roman Catholic Church, the politics of the 18th century, and the philosophy movement. Enlightenment was a term, which was used to describe a new philosophy of life. "It was a time when man, stepping, out of his shackles, began to use his rational facilities †¦ and shoved aside the state and church authorities."2 Individuals began to rely on their own instincts in order to realize that there were certain civil liberties that should be provided to them, that they were not receiving. Religious freedom was one of these civil liberties.... ...f Church and State destroyed many monarchies and permitted democracy. 1 Nicolson, Harold. The Mainstream of the Modern World: The Age of Reason. Edited by John Gunther. (Garden City, N.Y.: Doubleday and Company Inc.,1961),19. 2 Pacini, David S. The Cunning of the Modern Religious Thought. (Philadelphia: Fortress Press,1987),35. 3 Pacini, 36. 4 Hooker, Richard. "Martin Luther." http://www.wsu.edu/~dee/REFORM/LUTHER/HTM. (14Feb2000). 5 Nicolson, 40. 6 Pacini, 46. 7 Grell, Peter, Bob Scribner, ed. Tolerance and Intolerance in the European Reformation. (Cambridge: Cambridge University Press,1996),69. 8 Brians, Paul. "Rousseau, Jean-Jacques: The Social Contract (1762)." http://www.sgc.peachnet.edu/users/rreiman/www/time/rousseau.htm (14Feb2000). 9 Brians 10 Brians 11 Grell,167 12 Grell,168

Solution of Chapter 8 Operations Mangement by Jay Heizer

Service location decisions tend to focus on the revenue function, whereas manufacturing/industrial location decisions tend to focus on costs. The service sector uses techniques such as: Correlation analysis Traffic counts Demographic analysis Purchasing power analysis The industrial decision uses: Transportation method Factor-weighting approach Break-even analysis Crossover charts 8. Factors to consider when choosing a country: Exchange rates Government stability Communications systems within the country and to the home office Wage rates Productivity Transportation costsLanguage Tariffs Taxes Attitude towards foreign investors/incentives Legal system Ethical standards Cultural issues Supplies availability Market locations 9. Factors to consider in a region/community decision: Corporate desires Attractiveness of region Labor issue Utilities Environmental regulations Incentives Proximity to raw materials/customers Land/construction costs 10. Site location factors: Size and cost Transpo rtation systems Zoning Proximity of services/supplies needed Environmental impact END-OF-CHAPTER PROBLEMS 8. 1(a)Six laborers each making $3 per day can produce 40 units. b)Eight laborers each making $2. 50 per day, can produce 45 units. (c)Two laborers, each making $64 per day, can make 100 units.China is most economical, assuming transportation costs are not included. 8. 2Malaysia China Montana China is most favorable. 8. 6Atlanta Charlotte Charlotte is better. 8. 7| | Suburb B has the highest rating, but weights should be examined using sensitivity analysis, as the final ratings are all close. 8. 8| | Location| | | Present Location| Newbury| Hyde Park| | Factor| | Wgt| | | Wgt| | | Wgt| | | 1| 40| 0. 30| 12| 60| 0. 30| 18. 00| 50| 0. 0| 15. 0| | 2| 20| 0. 15| 3| 20| 0. 15| 3. 00| 80| 0. 15| 12. 0| | 3| 30| 0. 20| 6| 60| 0. 20| 12. 00| 50| 0. 20| 10. 0| | 4| 80| 0. 35| 28| 50| 0. 35| 17. 50| 50| 0. 35| 17. 5| | | Total Points| 49| Total Points| 50. 50| Total Points| 54. 5| It appe ars that Hyde Park represents the best alternative. 8. 9(a)Chicago = 16 + 6 + 7 + 4 = 33 Milwaukee = 10 + 13. 5 + 6 + 3 = 32. 5 Madison = 12 + 12 + 4 + 2. 5 = 30. 5 Detroit = 14 + 6 + 7 + 4. 5 = 31. 5 All four are quite close, with Chicago and Milwaukee almost tied.Chicago has the largest rating, with a 33. b)With a cutoff of 5, Chicago is unacceptable because it scores only 4 on the second factor. Only Milwaukee has scores of 5 or higher on all factors. 8. 10| Location A| | Factor| Weight| Rating| Weighted Score| | 1| 5| 100| 500| | 2| 3| 80| 240| | 3| 4| 30| 120| | 4| 2| 10| 20| | 5| 2| 90| 180| | 6| 3| 50| 150| | Total weighted score:| 1210| | Location B | | Factor| Weight| Rating| Weighted Score| | 1| 5| 80| 400| | 2| 3| 70| 210| | 3| 4| 60| 240| | 4| 2| 80| 160| | 5| 2| 60| 120| | 6| 3| 60| 180| | Total weighted score: | 1310| | Location C | Factor| Weight| Rating| Weighted Score| | 1| 5| 80| 400| | 2| 3| 100| 300| | 3| 4| 70| 280| | 4| 2| 60| 120| | 5| 2| 80| 160| | 6| 3| 90| 270| | Total weighted score:| 1530|Based on the total weighted scores, Location C should be recommended. Note that raw weights were used in computing these weighted scores (we just multiplied â€Å"weight† times â€Å"rating†). Relative weights could have been used instead by taking each factor weight and dividing by the sum of the weights (i. e. , 19). Then the weight for factor 1 would have been . Location C would still have been selected. . 11| | Site 3 has the highest rating factor, 86. 65, and should be selected. 8. 12(a)The following figure indicates the volume range for which each site is optimal. Site 1 is optimal for production less than or equal to 125 units. Site 2 is optimal for production between 125 and 233 units. Site 3 is optimal for production above 233 units. (b)For 200 units, site 2 is optimal. 8. 13| (a)| | (b)For 5,000 units, Perth is the better option. 8. 14| | V–A: A–B: B–C: 8. 15| (a)| | The total cost equations are: (b)Denv er is preferable over the range from 0–3,570 units.Burlington is lowest cost at any volume exceeding 3,570, but less than 25,000 units. Atlanta is never lowest in cost. Cleveland becomes the best site only when volume exceeds 25,000 units per year. (c)At a volume of 5,000 units, Burlington is the least-cost site. 8. 16| | The proposed new hub should be near (5. 15, 7. 31). 8. 17| | | City| Map Coordinates| Shipping Load| | A| 2, 1| 20| | B| 2, 13| 10| | C| 4, 17| 5| | D| 7, 7| 20| | E| 8, 18| 15| | F| 12, 16| 10| | G| 17, 4  | 20| | H| 18, 18| 20| | | | 120| 8. 19| | The proposed new facility should be near (7. 97, 6. 69).

The Americans With Disabilities Act (ADA) of 1990