Use the Following to Answer the Questions

question 154

Multiple Choice

Use the following to answer the questions.
Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores.The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores,and would be priced higher than other brands in the store,but a lower price line than the current Ray-Ban lines that are sold through more selective stores.In determining the price for this sunglass line,Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands.
-Refer to Scenario 20.1.If Ray-Ban selected the prices for its new sunglasses to be $60,$70,or $80,this would most likely be an example of using ____ pricing to enhance its distinctive positioning strategy.

• A) product-line
• B) odd-even
• C) professional
• D) promotional
• E) penetration

Analyze the impact of monopolistic practices on efficiency and market outcomes.

Identify and explain the conditions under which monopolies might operate at a loss or make profits.

Understand the regulatory framework surrounding monopolies and public utilities.

Examine the economic justifications for patents and government-sanctioned monopolies.

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Definitions:

Assimilate

The process of taking in new information or experiences and integrating them into our existing knowledge or cultural beliefs.

Accommodate

To make fit, adjust, or adapt to a particular space, situation, or need.

Schemas

Cognitive frameworks or concepts that help individuals organize and interpret information in the world around them.

Cognitive Developments

The process by which an individual's ability to think, understand, and reason matures over time.