Finance Questions & Answers

1. How much interest is carned on \( \mathrm{P}_{6,200} \) at \( 4 \% \) for one year?

SOCCER A soccer league holds an awards banquet at the end of the season. The banquet hall charges \( \$ 42 \) per person for the meal plus \( \$ 500 \) for the use of the hall.

Perfect price discrimination results in: decreased profits. charging each customer their reservation price, always charging a higher price. a lower quantity sold.

An airline company charges a high price for aflight that leaves on a Wednes day and returns that Friday, and it charges a low price fora flight that leaves on a Friday and returns: on Sunday. In this market, business travelers like to be home by the weekend, and leisure travelers are flexible on the dates they go, Why does the airline company charge a low price for the version that leaves on a Friday and returns on Sunday? because this is favorable for leisure travelers, who won't have to skip work because this is favorable for business travelers, who have to travel for work because leisure travelers have a higher reservation price when it comes to flights because business travelers are more price sensitive when it comes to flights

An airline company wants to charge high prices to business travelers while charging lower prices to leisure travelers because__ travelers typically have higher reservation prices, while___ travelers are price sensitive. business; business leisure; leisure business; leisure leisure; business

All of these are forms of group pricing discrimination EXCEPT: cell phone companies offering discounts for all customers. books being cheaper in India than in the United States. an internet company charging lower prices for residential than for business ser a hardesser charging more for women's haircuts than for men's.

A big box store offering to sign you up for free as a rewards member that gets occasional discounts if you fill out two sheets of information is considered a type of hurdle because: your current service is inferior. there is group pricing for members. there is a financial cost for the reward. there is a time commitment needed to join.

Haggling is one of the most annoying parts of buying a car, but that's precisely the point, because: customers with a low marginal benefit avoid the hassle of haggling. haggling is a specific type of group pricing. customers with a low reservation price are less likely to haggle. haggling is the hurdle you have to leap over to get a low price.

When a movie theater charges different prices for children, students, seniors, and other adults, it is a supplier selling four different goods. It sells tickets in the market for students to see movies, as well as tickets in the separate markets for children, seniors, and other adults. How should the quantity sold in eac market be determined? by applying the Rational Rule for Sellers until the marginal revenue is less than the marginal cost based on the individual supply curves for each group by selling equal quantities for each group

When haggling for an item such as a lot of land, your goal as a savvy buyer should be to convince the seller that you have a: low reservation price. high reservation price. low marginal revenue. (1) high marginal benefit.