[Appendix: Advanced Material] Cross functional revenue management examines capacity, pricing, and customer account management in order to maximize revenue. If the MegaPlex Movie Theater finds that too often they have to turn customers away from their theaters at peak movie times for blockbusters creating too much slippage, cross functional revenue management suggests:
a. They could consider increasing the capacity of each theater to be able to seat more customers.
b. They could lower the price at the peak times to reduce the problem of spoilage.
c. They could stop showing blockbuster movies and select more critically acclaimed art films to decrease spoilage.
d. They could stop showing movies at night.
a
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Capital expenditures:
a. are easily reversible b. are forms of operating expenditures c. Affect long-run future profitability d. Involve only money, not machinery e. none of the above
Would companies and individuals invest as much in significant research and development if a system of patents were not available? a. Yes they would, because they could still hope to monopolize the market
b. Yes they would, because firms are civic-minded and highly motivated to introduce innovations that improve the standard of living. c. No they would not, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts. d. No they would not, because the benefits to society of engaging in research and development would be less than the costs to society.
If the labor force increases in size, which of the following would NOT occur?
A. The labor supply curve would shift to the right. B. The equilibrium wage would fall. C. The labor demand curve would shift to the right. D. The number of workers employed would rise.
Answer the following statements true (T) or false (F)
1. A monopolist will avoid setting a price in the elastic segment of the demand curve and prefer to set the price in the inelastic segment. 2. In order to maximize profits, the monopolist will produce the output level where MR = MC and charge a price equal to MR and MC. 3. A monopolist, being the sole seller in a market, is assured of positive economic profits. 4. If a monopolist finds itself operating in the inelastic portion of its demand curve, then it should never lower its price because doing so would reduce its profits. 5. The supply curve for a monopolist is the upward-sloping portion of the marginal cost curve that lies above the average variable cost curve.