Each answer should be about a paragraph long. Do not copy your answers from the web, the text book, etc. In other words, you MAY USE the book, the videos, your notes, and other sources, but WRITE YOUR ANSWERS IN YOUR OWN WORDS.

Five essays at 14 possible points each (for a total of 70 points possible).

1.- Explain the importance of Long Run Average Cost (LRAC), when a firm is setting long term prices.

2.- Explain the differences between cost based pricing and value based pricing.

3.- Explain the importance of getting innovative new products to market quickly.

4.- Explain why Rolls Royce doesn�t sell their cars in a lot more dealerships like Ford and Chrysler do.

5.- Explain why Rolls Royce doesn�t advertise their cars on the Super Bowl.

Textbook to use: Kotler and Armstrong, Principles of Marketing, Pearson-Prentice Hall, 15th Edition.