From an Operational Perspective, Yield Management Is Least Effective Under

question 17

Multiple Choice

From an operational perspective, yield management is least effective under which of the following circumstances?

• A) Demand can be segmented by customer.
• B) The product can be sold in advance.
• C) The product can be kept to be sold when demand is stronger.
• D) Fixed costs are high, and variable costs are low.
• E) Demand is highly variable.

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Definitions:

Coase Theorem

A principle asserting that if property rights are well-defined and transaction costs are low, parties will negotiate to correct externalities and allocation resources efficiently, regardless of who holds the rights.

Externalities

Economic side effects or consequences of commercial activities that affect other parties without being reflected in the costs of the goods or services involved.

Negative Externality

A description of a situation where individual or corporate actions result in harmful effects on third parties or the environment, not compensated by the price of transactions.

Water Pollution

The contamination of water bodies such as rivers, lakes, and oceans, due to the discharge of harmful substances into these environments.