In recent years, wireless cellular telephones have been replacing land-line phone service. this is an example of

Joe Santos owns the only pizza parlor in a small town that is also home to a McDonald's, a Taco Bell, and a Kentucky Fried Chick

astra-53 [7]

Answer:

True

Explanation:

A more precise way to describe the situation is that Joe's pizza parlor is a monopolistic competition. But that definition considers that all 'food' items have some degree of close substitute relation.

But yes, if you consider this two conditions:

a broad definition of monopoly
other restaurants are not considered close substitutes for the food sold at the pizza parlor

Then yes, Joe has monopoly

5 0

3 years ago

A store has been selling 100 DVD burners a week at $450 each. A market survey indicates that for each $30 rebate offered to buye

Ivanshal [37]

Answer:

a rebate of 200 dollars will generate 500 sales

with a revenue of 125,000

Explanation:

We need to maximize the total revenue which is:

TR = Price x Quantity. First we define each of these:

P = (450 - 30X)

Q = (100 + 60X)

Being X the cash rebate

We now replace this into the TR formula:

TR = P x Q = (450 -30X) (100 + 60X)

TR = -1800x2 +27,000x -3,000x + 45,000

TR = -1800x2 +24,000x + 45,000

as this is a quadratic function: a: -1,800 b = 24,000 c = 45,000

the maximum revenue will be at the vertex: -b/2a

-24,000/2(-1,800) = 6.67

now we multiply by 30: 6.67 x30 = 200 dollars

which bring 60 x 6.67 = 400 new customers

250 x (100 +400) = 250 x 500 = 125,000

7 0

3 years ago

ABC systems ________. Multiple Choice will allocate costs based on the overall level of activity highlight the different levels

lozanna [386]

Answer: highlight the different level of activities

Explanation:

Activity Based Costing system assigns costs to the activity that are used in production and it highlight the different level of activities.

Activity based costing system is quite different from the traditional costing systems based on the way the indirect cost is being treated.

3 0

2 years ago

Complete the following table by indicating whether or not each scenario is an example of price discrimination.

Monica [59]

Answer: yes; no

Explanation:

Price discrimination is an exploitative selling strategy that sellers use to try to charge their customers on different prices for the same product or service.

Last-minute "rush" tickets can be purchased for most Broadway theater shows at a discounted price. They are typically distributed via lottery or on a first-come, first-served basis a few hours before the show. Assume that the theater in question does not hold seats in reserve for this purpose, but rather offers rush tickets only for seats not sold before the day of the performance......... YES PRICE DISCRIMINATION OCCURS

---.>In this case, the groups are segmented into those who paid earlier at normal price and those who paid in relation to the rush at discounted price, A case price discrimination arises because the people who have paid more than others for a same show, would not be reserved seats which means that the product was same for the two type of consumers but not the same price

Horizon Wireless offers various features "à la carte" that a customer may add to his or her calling plan, such as a text messaging package, a data package, and an Internet package. NO PRICE DISCRIMINATION

---->This is because Because Horizon Wireless is offering the different features with a la carte pricing, where every customer is subject to the same pricing irrespective of his or her calling plan.

If the price of a data package or internet were different for a customer with a more expensive calling plan, then Horizon Wireless might be attempting to identify thier different consumer types and try to exploit the differences in their willingness to pay.

8 0

2 years ago

in a revenue management system, forecasting, allocation, overbooking, and pricing must work in unison if the objective is to:

sineoko [7]

In a revenue management system; the forecasting, allocation, overbooking, and pricing must work in unison if the objective is to maximize the revenue generated by a perishable asset.

<h3>What is a revenue management system?</h3>

Basically, a revenue management system refers to a system that analyzes the combination of competitor rates, historical rates, market dynamics and inventory levels to predict demand and provide rate recommendations. A very good revenue management system will always automate the entire process and generate rates that can maximize revenue and profitability.

One of the example of use of Revenue Management is employed in the businesses of Hotel Management and the Airline Industry. The primary source of most revenue for hotels is found in their room rates and the revenue generated from the bookings is a simple multiplication of price and volume booked.