Question 6

Analysts at a technology company predict that the company will be able to increase the price for its new product after it has been on the market for one year. Which of the following conditions would BEST explain this prediction?
  • Question 7

    A company that does business in two neighboring countries is considering setting different prices for its product in each market. Which of the following factors should it NOT consider when trying to predict whether this pricing structure will be effective?
  • Question 8

    Exhibit:

    A recent graduate is interested in investing in a stock. This individual is particularly interested in retail companies and has been following two companies closely for the past year. In order to decide which stock to invest in, this individual decides to compare monthly returns for both companies over the past year. A table of descriptive statistics is given below. What can be said about Company A regarding risk and average returns in relation to Company B?
  • Question 9

    A new smartphone is being released at a price of $100. A customer with a willingness to pay (WTP) of $105 walks to the store, sees that there is a long line, and decides to leave. Another customer with a WTP of $113 arrives at the store at the same time and decides to wait in the line. What can an observer deduce from this observation?
  • Question 10

    Company B is evaluating whether to repair or replace a piece of plant equipment. Which of the following factors would NOT be taken into consideration when determining the relevant cash flows?