For–profit versus not–for–profit pricing, setting a market price Suppose
theState of Arizona decided to preserve some beautiful caves in the
southwestern part of the state. To defray the cost of preservation, state
managers decided to open the caves to guided tours. To prepare the caves for
visitors, vapor locks were built so that the moisture content of the caves
would remain stable. The state spent $10 million on the facilities. Now the
managers need to decide on a price for the tours.
ANALYZE
INFORMATION:
The following questions will help you analyze the information for this
problem. Do not turn in your answers to these questions unless your
professor asks you to do so.
• A.For–profit versus not–for–profit pricing, setting a market price Suppose
theState of Arizona decided to preserve some beautiful caves in the
southwestern part of the state. To defray the cost of preservation, state
managers decided to open the caves to guided tours. To prepare the caves for
visitors, vapor locks were built so that the moisture content of the caves
would remain stable. The state spent $10 million on the facilities. Now the
managers need to decide on a price for the tours.
ANALYZE
INFORMATION:
The following questions will help you analyze the information for this
problem. Do not turn in your answers to these questions unless your
professor asks you to do so.
• A. Describe how pricing policies in not–for–profit organizations are
different from pricing policies in for–profit organizations.
• B. Use the Internet or other sources to identify current prices for
other similar attractions.
• C. What additional information would you gather to evaluate the
price?
• D. Do you believe that the volume of tours
• B. Use the Internet or other sources to identify current prices for
other similar attractions.
• C. What additional information would you gather to evaluate the
price?
• D. Do you believe that the volume of tours
