Question 1

Successful companies:

Accepted Answer

A) must cover allocated fixed overhead costs during off-peak periods. 
B) ignore fixed costs when the firm is operating at full capacity. 
C) differentiate markups according to variations in product demand elasticities. 
D) set prices based on standard costs per unit, irrespective of short-term variations in actual unit costs. 
A) must cover allocated fixed overhead costs during off-peak periods. 
B) ignore fixed costs when the firm is operating at full capacity. 
C) differentiate markups according to variations in product demand elasticities. 
D) set prices based on standard costs per unit, irrespective of short-term variations in actual unit costs. C

Question 2

If all customers are charged the same price and the demand curve is downward sloping, consumers' surplus is always less than:

Accepted Answer

A) total revenue minus total cost. 
B) the excess of revenues over the minimum amount necessary to produce output. 
C) total revenues. 
D) the value of output to consumers above and beyond the amount paid to producers. 
A) total revenue minus total cost. 
B) the excess of revenues over the minimum amount necessary to produce output. 
C) total revenues. 
D) the value of output to consumers above and beyond the amount paid to producers. C

Question 3

If a firm charges a price of €9.99 for a product with a cost of €4, the markup on cost equals:

Accepted Answer

A) 40%. 
B) 60%. 
C) 67%. 
D) 150%. 
A) 40%. 
B) 60%. 
C) 67%. 
D) 150%. D

Question 4

An 80% markup on price is equivalent to a markup on cost of:

Accepted Answer

A) 20%. 
B) 44%. 
C) 56%. 
D) 400%. 
A) 20%. 
B) 44%. 
C) 56%. 
D) 400%.

Question 5

An 80% markup on cost is equivalent to a markup on price of:

Accepted Answer

A) 20%. 
B) 44%. 
C) 56%. 
D) 400%. 
A) 20%. 
B) 44%. 
C) 56%. 
D) 400%.

Question 6

When P = -4, the optimal markup on cost is:

Accepted Answer

A) 25%. 
B) 33%. 
C) 75%. 
D) 400%. 
A) 25%. 
B) 33%. 
C) 75%. 
D) 400%.

Question 7

Price discrimination always exists when:

Accepted Answer

A) prices vary among customers. 
B) markups vary among customers. 
C) markups are constant among customers. 
D) none of these. 
A) prices vary among customers. 
B) markups vary among customers. 
C) markups are constant among customers. 
D) none of these.

Question 8

A by-product is any secondary output customarily produced:

Accepted Answer

A) in fixed proportions. 
B) in variable proportions. 
C) with MC = 0. 
D) with MC = MCQ. 
A) in fixed proportions. 
B) in variable proportions. 
C) with MC = 0. 
D) with MC = MCQ.

Question 9

When P = -4, the optimal markup on price is:

Accepted Answer

A) 400%. 
B) 75%. 
C) 33%. 
D) 25%. 
A) 400%. 
B) 75%. 
C) 33%. 
D) 25%.

Question 10

If a firm charges a price of €9.99 for a product with a cost of €4, the markup on price equals:

Accepted Answer

A) 40%. 
B) 60%. 
C) 67%. 
D) 150%. 
A) 40%. 
B) 60%. 
C) 67%. 
D) 150%.

Successful companies:

If all customers are charged the same price and the demand curve is downward sloping, consumers' surplus is always less than:

If a firm charges a price of €9.99 for a product with a cost of €4, the markup on cost equals:

An 80% markup on price is equivalent to a markup on cost of:

An 80% markup on cost is equivalent to a markup on price of:

When P = -4, the optimal markup on cost is:

Price discrimination always exists when:

A by-product is any secondary output customarily produced:

When P = -4, the optimal markup on price is:

If a firm charges a price of €9.99 for a product with a cost of €4, the markup on price equals:

Nature and Scope of Managerial Economics

Economic Optimization

Demand and Supply

Demand Analysis

Demand Estimation

Forecasting

Production Analysis and Compensation Policy

Cost Analysis and Estimation

Linear Programming

Competitive Markets

Performance and Strategy in Competitive Markets

Monopoly and Monopsony

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Risk Analysis

Capital Budgeting

Organization Structure and Corporate Governance

Government in the Market Economy

Filters

Exam 15: Pricing Practices

Successful companies:

If all customers are charged the same price and the demand curve is downward sloping, consumers' surplus is always less than:

If a firm charges a price of €9.99 for a product with a cost of €4, the markup on cost equals:

An 80% markup on price is equivalent to a markup on cost of:

An 80% markup on cost is equivalent to a markup on price of:

When P = -4, the optimal markup on cost is:

Price discrimination always exists when:

A by-product is any secondary output customarily produced:

When P = -4, the optimal markup on price is:

If a firm charges a price of €9.99 for a product with a cost of €4, the markup on price equals:

Nature and Scope of Managerial Economics

Economic Optimization

Demand and Supply

Demand Analysis

Demand Estimation

Forecasting

Production Analysis and Compensation Policy

Cost Analysis and Estimation

Linear Programming

Competitive Markets

Performance and Strategy in Competitive Markets

Monopoly and Monopsony

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Risk Analysis

Capital Budgeting

Organization Structure and Corporate Governance

Government in the Market Economy

Filters