The act of selling an item in slightly altered forms at different prices and to different groups of consumers is known as
A. tie-in sales.
B. lemons marketing.
C. bundling.
D. versioning.
Answer: D
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Hedging by buying an option
A) limits gains. B) limits losses. C) limits gains and losses. D) has no limit on option premiums.
Differences in human capital are usually large and easily observable
Indicate whether the statement is true or false
Initial studies of new Keynesian inflation dynamics indicated that the average price-adjustment intervals in the United States was as long as
A) 6 months. B) 12 months. C) 2 years. D) 4 years.
The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to multiple types of customers b. the costs of arbitraging the price differences across markets is large c. the manufacturer acquires the distributer in the higher priced market d. competition provide little ability for the manufacturer has to price above marginal cost