Indicate whether the following statements are TRUE or FALSE. True False Revenue management decisions are based on maximizing the incremental cost and contribution margin. The total contribution function m(p) is hill-shaped with a single peak, corresponding to the optimal price p Incremental costs may vary by type, size, and duration of the commitment, but not by channel and market segment. A retailer faces a constant-elasticity price-response function with an elasticity of 1.5 for a popular model of television. It costs him 280 a piece to purchase the computers wholesale. The optimal price in order to maximize total contribution would be 640. In case of an airline, the incremental profit is obtained from the empty seats sold by pricing above marginal cost. The total contribution function is hill-shaped with a single peak, which is corresponding for the prices lower than the incremental cost. Customer behavior affects the price-response function and, customer behavior depends on the willingness to pay. Decision Trees is one of the key techniques used by large retailers to uncover associations between items