Be Exams

Excess demand of a product exerts __________pressure on prices a. ​Upward b. ​Downward c. ​No d. ​Zero {Ans: a. ​Upward}What would be a better pricing strategy for the firm? At this price, how much will the firm earn in profits? a. Bundle the goods for $9,500; Profits = $19,000 b. Bundle the goods for $6,000; Profits = $12,000 c. Bundle the goods for $4,500; Profits = $9,000 d. Bundle the goods for $5,000; Profits = $10,000 {Ans: b. Bundle the goods for $6,000; Profits = $12,000}If the firm you work for pays you 51 cents for every mile you drive your own car on company business, in your decision whether to use your own car or the company car, which of the following is (are) relevant to your decision? a. Monthly lease payments if you currently lease your car, not own b. The purchase price of your car c. Annual registration fees d. None of the above {Ans: d. None of the above}In the axiomatic (non-strategic) view of bargaining, if you want to improve your own bargaining position: a. Have low-value outside options b. Increase the value of you outside options c. Increase the value of your