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Author Question: For a theme park two-tier pricing can include a positive admission price and a zero per-ride fee. ... (Read 230 times)

penguins

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on: Jul 1, 2018
For a theme park two-tier pricing can include a positive admission price and a zero per-ride fee.
 
  Indicate whether the statement is true or false

Question 2

An incumbent announces it will significantly increase output in the next period, but only has contracts for the amount produced this period. The announcement is a
 
  A) credible threat.
  B) non-credible threat.
  C) commitment.
  D) mixed strategy.


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taylorsonier

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

True . Both fees do not have to be positive. The firm will choose the combination of fee and per-ride price that maximizes profits.

Answer to Question 2

B


penguins

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Reply #2 on: Jul 1, 2018
Thank you


taylorsonier

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Reply #3 on: Jul 1, 2018
No problemo


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