Questions from Managerial Economics


Q: Some high-end retailers place their most expensive products right in

Some high-end retailers place their most expensive products right in the entryway of the store, where consumers will see them first, and place their more popular, better-selling items further back. Wh...

See Answer

Q: When the Macintosh computer was introduced in 1982, Apple made it

When the Macintosh computer was introduced in 1982, Apple made it difficult for third party software developers to develop software for the platform. In contrast, Apple makes it relatively easy for th...

See Answer

Q: Concert prices have increased coincidentally with illegal downloading of music off the

Concert prices have increased coincidentally with illegal downloading of music off the Internet. Why?

See Answer

Q: In 2005, Clear Channel (an owner of multiple popular radio

In 2005, Clear Channel (an owner of multiple popular radio stations) spun off concert promoter Live Nation into an independent company. How would this affect prices for concert tickets or rates for ra...

See Answer

Q: Why might Mattel set a much lower margin on its Barbie dolls

Why might Mattel set a much lower margin on its Barbie dolls than on the accessories for the dolls?

See Answer

Q: German brothels recently began offering a monthly subscription service for multiple purchasers

German brothels recently began offering a monthly subscription service for multiple purchasers if you wished to reduce the incidence of prostitution, would you consider this pricing plan to be a desir...

See Answer

Q: Your family business produces a secret recipe salsa and distributes it through

Your family business produces a secret recipe salsa and distributes it through both smaller specialty stores and chain supermarkets. The chains have been demanding sizable discounts but you do not wan...

See Answer

Q: A manufacturer of microwaves has discovered that male shoppers, on average

A manufacturer of microwaves has discovered that male shoppers, on average, have lower values for microwave ovens than female shoppers. Additionally, male shoppers attribute almost no extra value to a...

See Answer

Q: The pricing model for iTunes has been to price songs individually.

The pricing model for iTunes has been to price songs individually. Instead, Spotify opted to offer unlimited song playing for a monthly fee. Would Spotify’s pricing model likely yield more profit than...

See Answer

Q: Decentralization of decision-making authority is consistent with which of the

Decentralization of decision-making authority is consistent with which of the following? a. A trend of stronger, more active CEOs. b. Shrinking costs of computing bandwidth, which allows information t...

See Answer