Consider a case of possible price discrimination - lunch specials at restaurants. some restaurants may offer a soup and salad for $5 during lunch hours and offer the same dish for $8 during dinner hours. let's suppose that the soup and salad is the cheapest dinner option, and that the restaurant, while usually only half-full during lunch hours, is often full enough during dinner hours that people end up choosing to eat elsewhere because of the wait. in what way might this difference in prices not be price discrimination? people that come in and order the soup and salad for dinner might cause customers who would have ordered a more expensive meal to instead eat elsewhere because of the wait. as such, the marginal costs of the two meals to the restaurant are different, and thus this isn't necessarily price discrimination. the restaurant does not have its servers trying to identify the elasticity of the individual demand curves of its customers and then charging different prices, and so this is not price discrimination. since different customers pay different prices for an otherwise identical meal, this must be price discrimination. people might be willing to pay more for soup and salad during dinner hours, and so the restaurants are not price discriminating since they are simply charging a higher price to people that are willing to pay the higher price. people often pay more for dinner than they do for lunch. if the price of a soup and salad during lunch relative to the average lunch price is the same as the price of a soup and salad during dinner relative to the average dinner price, then the restaurant is not price discriminating since the relative prices are equal.

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

Brian has been working for a few years now and has saved a substantial amount of money. he now wants to invest 50 percent of his savings in a bank account where it will be locked for three years and gain interest. which type of bank account should brian open? a. savings account b. money market account c. checking account d. certificate of deposit

Considered to be a "super tool" or tool that has high use and high potential for improving project success?