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.
Question 2
Adverse selection in insurance requires that
a. all people face the same risk
b. potential customers facing more risk are no more interested in purchasing insurance
c. people are risk averse
d. insurers can tell higher risk people from lower risk people
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