Smelly Fruit at First Glance There Is Little to Like About the About

question 68

Multiple Choice

Smelly Fruit
At first glance there is little to like about the durian.The durian is a fruit popular in Thailand that is spiky outside and stinky on the inside.When confronted with the durian for the first time,the Wall Street Journal recently reported that westerners often describe its distinctive sulphurous smell with words like stinky socks and manure.However,the durian is so popular in Thailand that one variety of the durian fruit,called the Kan Yao,has been selling for as high as $200.Even at that price,supply of the Kan Yao cannot keep up with demand.There are approximately 30 varieties of the durian grown in Thailand,with the most plentiful selling in the $15 range.The yellow flesh of the durian,the part you eat,has very powerful smell,but possesses a sweet,nutty taste that Thais cannot seem to get enough of at any price.
-Refer to Smelly Fruit.Suppose you have decided to buy land in Thailand and become a durian producer.You see that the customary price for a Kan Yao is $200,so that is the price you decide to charge for your durian crop.This suggests you are using a _____ approach to setting your price.

• A) profit maximization
• B) market share
• C) return on investment (ROI)
• D) sales maximization
• E) status quo

---

Definitions:

Insider Trading

Buying or selling a publicly-traded company's stock by someone who has non-public, material information about that stock.

Securities Exchange Act of 1934

A U.S. federal law that regulates the secondary trading of securities (stocks, bonds, and debentures) in the stock market.

Rule 10b-5

A regulation under the SEC that prohibits any act or omission resulting in fraud or deceit in connection with the purchase or sale of any security.

Security Definition

A term referring to measures or protocols implemented to protect against unauthorized access, theft, or damage to information, buildings, or individuals.