Use the Following Table to Answer the Following Questions -If the Firm Does Not Bundle the Products, What Single

question 46

Multiple Choice

Use the following table to answer the following questions
$$\begin{array} { | c | c | c | } \hline \text { Customer } & \begin{array} { c } \text { Product A } \\\text { Reservation Price }\end{array} & \begin{array} { c } \text { Product B } \\\text { Reservation Price }\end{array} \\\hline 1 & 1,000 & 200 \\\hline 2 & 800 & 400 \\\hline \text { Marginal Cost } & 500 & 100 \\\hline\end{array}$$
-If the firm does not bundle the products, what single price should the firm charge for product B to maximize profit?

• A) 100
• B) 200
• C) 300
• D) 400

Understand the role of noncash expenses and their effect on financial statements.

Grasp the importance of liquidity ratios in assessing an organization’s short-term financial stability.

Identify the relevance of profitability ratios in evaluating a firm’s financial performance.

Analyze the significance of accounting cycles, accrual accounting, and the timing of revenue recognition.

---

Definitions:

Established Theory

A concept or principle that has been widely accepted by the scientific community because it is supported by a substantial body of evidence.

Hypothesis

A conception or proposition that is tentatively assumed and then tested for validity by comparison with observed facts and by experimentation.

Scientific Explanation

A logical and systematic description that aims to interpret and clarify phenomena based on empirical evidence and scientific methodologies.

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation.