Cheap-O Air, an airline, decides to segment the marketplace of possible consumers. They decide to segment consumers based on which class they fly in and focus on economy class. What issues, if any, arise from segmenting the marketplace based on which class consumers fly in?
A. I think it's fine to segment based on which class consumers fly in
B. It's likely cheap to market to economy-class consumers
C. The segment is not homogeneous (different consumers with different needs might fly in economy class for different reasons)
D. Consumers in different flight classes are not accessible (e.g. your marketing efforts cannot reach them)
Ans: C. The segment is not homogeneous (different consumers with different needs might fly in economy class for different reasons)
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Everything else held constant, an increase in financial frictions ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
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A) 2.6%. B) 7.41%. C) 8%. D) 10%.
Which of the following is not trueconcerning the indifference map?
A. Each consumer has a map of indifference curves. B. Consumers always prefer curves farther from the origin. C. Each indifference curve in the map represents a different level of total utility. D. Indifference curves intersect at the point where marginal utilities are maximized