Question 26

An online music streaming company has two subscription options:
1.Listen to unlimited music with five minutes of advertisements for every hour of music.
2.Pay a monthly fee and listen to unlimited music with no ads.
If a potential customer wants to subscribe to the company but is indifferent between options 1 and 2, the customer's willingness to pay (WTP) is:
  • Question 27

    Which of the following graphs shows a negative relationship between the two variables?
    A)

    B)

    C)

    D)
  • Question 28

    During 2013, a company's prepaid expense decreased by $40,000, while its unearned revenue increased by $60,000. The company reported a pretax income under accrual basis of $250,000 on its 2013 income statement. What is the company's pretax income under
    cash basis of 2013?
  • Question 29

    In which situation would it be appropriate to use time-series data?
  • Question 30

    A chain of grocery stores operates in two neighboring towns. The store in one of the towns charges five percent more than the other store for the same products. How can the company charge different prices and remain competitive?