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Author Question: If the company plans to produce 5000 units of output, is using the competitor's technology a good ... (Read 73 times)

rachel9

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on: Jul 1, 2018
If the company plans to produce 5000 units of output, is using the competitor's technology a good idea?
 a. Yes
 b. No
 c. It does not matter, at 5000 units you are indifferent between the two technologies
  d. None of the above

Question 2

Circle of Crust Pie Five Pizzas has a frequent purchaser program, called Circle of Crust, in which patrons earn points with every purchase. With enough points, the patron's next purchase is free. How does this program alter customer decisions?


Kdiggy

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Reply #1 on: Jul 1, 2018
Answer to Question 1

b

Answer to Question 2

This is a form of a volume discount. Under the program, customers face a lower marginal cost of future pizzas. This lowers the price for the pizzas and induces them to make more purchases than they would otherwise.


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