SOLVED

61) According to basic economics within a competitive marketplace, the price of a product is set by its ________. A) opportunity cost B) sunk cost C) marginal cost D) transaction cost E) fixed cost 62) Which of the following defines marginal cost? A) It is the cost of an alternative that must be forgone in order to pursue a certain action. B) It is the cost of producing an additional unit of output. C) It is the cost that is not dependent on the level of goods or services produced by the business. D) It is the cost that has already been incurred and cannot be recovered. E) It is the cost incurred in making an economic exchange. 63) Which of the following actions of a firm suggests that it is using the freemium approach to applying freeconomics? A) providing free services to customers and getting paid for it by third parties B) reducing the sale price of one item in order to sell something else of value C) distributing products to customers without an appreciable cost to anyone D) offering basic services for free, but charging a premium for special features E) allowing people to participate and collaborate to create something of value 64) Musicmatch Jukebox is an all-in-one music management tool that was first marketed in 1999. Most users can use the Basic/Free version, but a $19.99 upgrade provides extra features such as supertagging and faster ripping and burning. Which of the following explains this approach to applying freeconomics? A) advertising approach B) freemium approach C) zero marginal cost approach D) cross subsidies approach E) gift economy approach 65) Tele’Wire, a mobile manufacturer, offers free connections to customers who buy its mobile phones. This cost of connection is actually included in the price of the mobile phone. Tele’Wire is pursuing a(n) ________ approach to applying freeconomics. A) cross subsidies B) gift economy C) zero marginal cost D) advertising E) freemium 66) Web sites like ez-tracks and beemp3 pursue a(n) ________ approach to applying freeconomics when they offer free music downloads for users because reproduction and distribution of these products come at no cost. A) gift economy B) zero marginal cost C) advertising D) cross subsidies E) freemium 67) Wikipedia is a free, web-based, collaborative, multilingual encyclopedia project supported by the non-profit Wikimedia Foundation. Its 17 million articles have been written collaboratively by volunteers around the world, and almost all of its articles can be edited by anyone with access to the site. This allows people to participate and create something of value for everyone. Wikipedia is pursuing a(n) ________ approach to applying freeconomics. A) gift economy B) zero marginal cost C) advertising D) cross subsidies E) freemium 68) Unstructured decisions can be programmed directly into operational information systems so that they can be made with little or no human intervention. 69) Tactical-level decision making is more structured and routine than operational-level decision making. 70) Managerial-level decision making is referred to as semistructured decision making.