1. If a firm can increase its total revenue by raising the price, shouldn't it do so? Explain your answer.
2. How does price allocate goods and services?
3. Why is it important for managers to understand the concept of break-even points? Are there any drawbacks to using break-even analysis?
4. How important is it for a company to estimate ROI before launching a new product? What does a target ROI enable that company to do?
5. How does the stage of a product's life cycle affect price? Give some examples.