Astroscope Tours Finds That If It Were to Increase Its

question 8

Multiple Choice

Astroscope Tours finds that if it were to increase its price by 10 percent, it would have a 6 percent reduction in the NPV of its new 3-Hour Tour. Considering other things to be unchanged, Astroscope's analysis could be described as:

• A) Monte Carlo simulation.
• B) break-even analysis.
• C) sensitivity analysis.
• D) variance analysis.

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Definitions:

Legitimate Power

Refers to the authority an individual holds as a result of their position or role within an organization, perceived as rightful by members.

Managers

Individuals who are responsible for planning, organizing, leading, and controlling an organization's activities to achieve its goals.

Right

This term in isolation is too broad; in a specific context, it could refer to an entitlement, legal protection, or moral principle that is recognized and upheld in a social system.

Authority

The power or right to give orders, make decisions, and enforce obedience within an organizational or social hierarchy.