1) Smart Feet Inc. produces shoes that are better quality and cost more to make than the shoes of its competitors. Smart Feet realizes that there will be a large difference between the cost to produce the shoes and the consumer's willingness to pay for them. Even so, Smart Feet decides to charge the same price as its competitors. Which of the following will most likely be the result of this action?

a)	Smart Feet will be bought by a competitor.
b)	Smart Feet will increase its marketability.
c)	Smart Feet will gain market share.
d)	Smart Feet will go out of business

2) In 2014, Apple had a return on revenue of 29.3 percent, and Microsoft had a return on revenue of 32 percent. Even so, Apple had a higher return on invested capital than Microsoft. Why did this happen?

a)	Apple spent more on research and development and marketing and sales than Microsoft.
b)	Apple was able to charge a much higher margin for its products and services than Microsoft.
c)	Apple had a higher cost structure than Microsoft.
d)	Apple had a much higher selling, general, and administrative expense that Microsoft.

3) Airbnb rents spaces that previously would have been unused to generate revenue, while also dramatically increasing the potential amount of accommodation space in the 191 countries. This business uses a _____ technique.

a)	offshoring
b)	crowdsourcing
c)	binge watching
d)	peer-to-peer

4) Free Spirit Communications Inc. is a cellular service provider that charges its customers $1 for three hours of talk time. So, if a customer's talk time for a month is 60 hours, the company charges him or her $20 at the end of the month. Which of the following business models does this best illustrate?

a)	pay-as-you-go
b)	subscription-based
c)	razor-razor-blade
d)	freemium