Exam 12: Price Determination

The pricing goal of increasing sales volume is typically adopted to maintain the firm's profit levels while increasing its sales.

Which of the following is an example of a price?

Which of the following organizations most likely has a kinked demand curve?

_____ is the amount of money and/or other items with utility needed to acquire a product.

The _____ _____ of demand refers to the responsiveness of quantity demanded to price changes.

For which of the following products is the manufacturer most likely to use above-market pricing in order to set prices?

Which of the following organizations will most likely try to price below the competitive level?

Which of the following is an example of substitute competition for a Little Debbie oatmeal snack cake?

Which of the following is an example of a variable cost for a supermarket?

Price stabilization goals are most commonly found in highly innovative industries such as electronics and pharmaceuticals.

Which of the following is an example of competition for sliced ham used to make sandwiches?

An evaluation of cost-plus pricing shows the method is:

_____ is the ratio of perceived benefits to price and any other incurred costs.

When Patricia Flagg's friend asked her create something to sell at a holiday boutique food booth, she had no idea she was launching a new business. For her initial product she packaged eleven different kinds of beans, some herbs, and some spices with directions to add a ham hock, water, and vegetables for Minnesota Heartland soup. She has since added Illinois Prairie Corn chowder, which has dry corn, rice, and seasonings, as well as a Louisiana Red Bean gumbo mix and a New England fish soup mix. Each mix makes enough to feed 10 people. Her annual fixed costs are $9,000, and the variable costs for one bag of soup mix are $1.50. An individual bag of soup mix sells for $6.50. In her first year of operation, she sold 3,800 mixes. -The average fixed cost curve for Frontier Soup would:

Marginal revenue is the:

K-Block cooking charts are poster-sized recipes designed to encourage children to cook. The pricing objective for the manufacturer of K-Block cooking charts is "to sell 500 more packages of cooking charts than it sold last year." This objective is an example of a _____ pricing goal.

Shannon's is a store that specializes in merchandise imported from Scotland. One of its most popular items is a box of Scottish shortbread. The owner of the store pays $6 per box. This price does not reflect discounts, freight charges, or any other price modifications. The $6 is the _____ price.

K-Block cooking charts are poster-sized recipes designed to encourage children to cook. The recipe cards are sold in packages of four. Fixed costs for the company are $6,000, and variable costs per card are $1. A package of four cards is sold for $9.99. What is the company's break-even point in number of packages?

K-Block cooking charts are poster-sized recipes designed to encourage children to cook. The recipe cards are sold in packages of four. Fixed costs for the company are $6,000, and variable costs per card are $1. A package of four cards is sold for $9.99 because the product's marketer wants to earn about a 60 percent profit on each package sold. What advice would you give the marketer of K-Block cooking charts?

A _____ _____ is that quantity of output at which total revenue equals total costs, assuming a certain selling price.