Jesse Pollard Is the Marketing Director for SNERDLY TV Cable

question 84

Multiple Choice

Jesse Pollard is the marketing director for SNERDLY TV Cable. He is considering offering a DVR service (digital video recording) to his customers and he is not certain what price they are willing to pay. He had a survey conducted and, after respondents were given a detailed description of the proposed DVR service, they were asked what price they were willing to pay for the service. The mean price was $30 a month. Based upon this mean, Jesse should:

• A) immediately offer the service for $30 a month
• B) examine the standard deviation
• C) examine the range
• D) examine the frequency and percentage distribution
• E) Pollard should actually examine all items covered in B through D before making the decision.

---

Definitions:

Profit-Maximizing Firm

A business whose primary objective is to achieve the highest possible profits through its operations and investments.

Market Share

The part of the market under the control of a specific company or product.

Kinked Demand Curve

A theory in economics suggesting that prices for a product have a tendency to stay stable because competitors will match price decreases but not price increases.

Administered Prices

Prices that are set by an authority, such as a government or agency, rather than being determined by market forces.