Case 3:   Suppose that your firm has designed a way to test…

Case 3:   Suppose that your firm has designed a way to test a new pricing structure.  A total of 100 retail locations were randomly divided into two groups.  Sales were measured for all locations for a week.  Then, all of the retail locations in the first group adopted the new pricing structure.  Finally, sales were measured again for all locations.   Q: Which of the following is true about the above?

Case 4:  A company sells two goods, A and B, each at $5.  In…

Case 4:  A company sells two goods, A and B, each at $5.  In addition, they offer a bundle of the two goods together for $9.50. Four consumers have the following values of the two products:   Consumer 1: $7.50 for A, $4.00 for B Consumer 2: $6.00 for A, $5.00 for B Consumer 3: $4.50 for A, $4.50 for B Consumer 4: $4.00 for A, $8.00 for B   Q: Consider the relationship between the above values.  If both products cost very little to produce, which of the following is the most likely way to increase profit?

Case 1:  Suppose that a camera manufacturer has two potentia…

Case 1:  Suppose that a camera manufacturer has two potential products The XD-Pro camera costing $450 to manufacture A XD-S camera also costing $450 to manufacture Professional photographers value the XD-Pro at $1150 while amateur photographers value the XD-Pro at $900.  Professional photographers value the XD-S camera at $850 while amateur photographers value the XD-S at $700.  Suppose that the firm expects 1000 professionals and 1000 amateurs in the market for these cameras.   Q: Which of the following is true about this case?