A Local Video Store Estimates Their Average Customer's Demand Per

question 64

Multiple Choice

A local video store estimates their average customer's demand per year is Q = 20 - 4P, and knows the marginal cost of each rental is $1.00.How much should the store charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy?

• A)$20.
• B)$32.
• C)$40.
• D)$64.

---

Definitions:

Organizational Culture

The shared values, beliefs, and practices that influence the behavior of individuals within an organization.

Cultural Training

The process of educating individuals about the cultural norms, values, and practices of a different society to enhance their interaction and communication within that context.

Ideological Control

The corporate development of a system of values, beliefs, and meanings with which employees are expected to identify strongly.

Organizing

The act of arranging or structuring elements in a systematic way to achieve a specific goal or manage activities.