Used Car Center Inc. allows salespeople to charge different customers different prices for essentially the same automobile depending on how good the customer is at negotiating the price. In this scenario, the company uses a:
a. two-part pricing tactic.
b. price lining tactic.
c. flexible pricing tactic.
d. price skimming tactic.
ANSWER: c
Used Car Center Inc. uses flexible pricing. Flexible or variable pricing is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.
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Which of the following is a second way of formulating the Markowitz model?
a. Maximizing the expected return of the portfolio subject to a constraint on variance b. Minimizing the expected return of the portfolio subject to a constraint on variance. c. Maximizing the variance of the portfolio subject to a constraint on the expected return of the portfolio d. Maximizing the variance of the portfolio with no constraint needed for the expected return of the portfolio
Terry is a worker in the country Pretoria. His salary is $46,000 and his taxable income is $52,000 . Pretoria imposes a Worker Tax as follows:
Employers withhold a tax of 20% of all wages and salaries. If taxable income as reported on the employee's income tax return is greater than $50,000, an additional 10% tax is withheld on all income. Terry's marginal tax rate is: a. 0% b. 10% c. 20% d. 30%