Psychological discounting involves setting an artificially high price and then offering the product at substantial savings
Indicate whether the statement is true or false
TRUE
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Answer the following statements true (T) or false (F)
1. Heuristics are strategies that simplify the process of making decisions. 2. When managers use information that is readily available from memory to make judgments, it is known as a confirmation bias. 3. Being "loss adverse" and hating to admit you're wrong can contribute to the escalation of commitment bias. 4. Groups make better decisions than most individuals acting alone.
A property owner wants to base rental terms for a retail location on sales and anticipated property maintenance but wants total rental dollar amounts set for each year. The best lease type is a _____ lease
a. straight b. percentage c. graduated d. net
Constraints in LP problems that do not affect the boundaries of the feasible solution region are referred to as ______ constraints.
A. redundant B. binding C. restrictive D. optimal
Odin Avionics makes aircraft instrumentation
Its basic navigation radio requires $90 in variable costs and $2,000 per month in fixed costs. Odin sells 30 radios per month. If the company further processes the radio, to enhance its functionality, it will require an additional $25 per unit of variable costs, plus an increase in fixed costs of $800 per month. The current sales price of the radio is $260. The marketing manager is sure that Odin can charge a higher sales price for the improved version. At what sales price level would the new, improved radio begin to improve operating earnings? (Round to the nearest whole dollar.) A) at a sales price higher than $312 B) at a sales price of $260 C) at a sales price lower than $260 D) at a sales price of $375