Question 1

Explain the concept of marginal analysis.

Accepted Answer

Marginal analysis is the method of analy

Question 2

A local apparel shop sets prices by adding a 45 percent markup to the invoice price charged by the supplier.This method of pricing is known as _____ pricing.

Accepted Answer

A)  cost-plus 
B)  breakeven 
C)  full-cost 
D)  incremental-cost 
A)  cost-plus 
B)  breakeven 
C)  full-cost 
D)  incremental-cost

Question 3

Cost-plus pricing is the least popular method of setting prices.

Accepted Answer

A) True 
 B)False

Question 4

Prestige pricing objectives emphasize:

Accepted Answer

A)  quality and exclusivity. 
B)  revenue maximization. 
C)  cost minimization. 
D)  sales maximization. 
A)  quality and exclusivity. 
B)  revenue maximization. 
C)  cost minimization. 
D)  sales maximization.

Question 5

The _____ of demand is the percentage change in the quantity of a good or service demanded divided by the percentage change in its price.

Accepted Answer

A)  volume elasticity 
B)  competition sensitivity 
C)  price elasticity 
D)  volume sensitivity 
A)  volume elasticity 
B)  competition sensitivity 
C)  price elasticity 
D)  volume sensitivity

Question 6

Every "regulatory" price increase is a tax.

Accepted Answer

A) True 
 B)False

Question 7

_____ are volume-related pricing objectives that have the goal of controlling a portion of the market for a firm's product.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 8

Demand often shows:

Accepted Answer

A)  more elasticity in the short run than in the long run. 
B)  less elasticity in the long run than in the short run. 
C)  the same elasticity in the short run and in the long run. 
D)  less elasticity in the short run than in the long run. 
A)  more elasticity in the short run than in the long run. 
B)  less elasticity in the long run than in the short run. 
C)  the same elasticity in the short run and in the long run. 
D)  less elasticity in the short run than in the long run.

Question 9

Define price.Explain why setting prices can be a difficult process.

Accepted Answer

Price is the exchange value of a good or

Question 10

Identify and discuss the major categories of pricing objectives used by for-profit organizations.

Accepted Answer

The four major categories of pricing obj

Question 11

Prices of electronic equipment and automobiles tend to fluctuate far less than prices of crops such as sugarcane and bananas.

Accepted Answer

A) True 
 B)False

Question 12

Sales maximization can also result from nonprice factors such as service and quality.

Accepted Answer

A) True 
 B)False

Question 13

The breakeven point is the point at which total revenue equals total cost.

Accepted Answer

A) True 
 B)False

Question 14

The pricing technique used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost is known as _____ analysis.

Accepted Answer

A)  cost-plus 
B)  marginal 
C)  breakeven 
D)  incremental-cost 
A)  cost-plus 
B)  marginal 
C)  breakeven 
D)  incremental-cost

Question 15

Statutes enacted in most states that once permitted manufacturers to stipulate a minimum retail price for their product are called _____.

Accepted Answer

A)  fair-trade laws 
B)  tax-exemption laws 
C)  price discrimination laws 
D)  loss-leader laws 
A)  fair-trade laws 
B)  tax-exemption laws 
C)  price discrimination laws 
D)  loss-leader laws

Question 16

List the four types of market structures based on the economic theory,and provide an example of an industry or business for each of the four types.

Accepted Answer

The four types of market structures are:

Question 17

Statutes enacted in most states that once permitted manufacturers to stipulate a minimum retail price for their product are called _____.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 18

The practice of adding a percentage of specified dollar amount-or markup-to the base cost of a product to cover unassigned costs and to provide a profit is known as _____.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 19

Demand curves must be based on marketing research estimates that may be less exact than cost figures.

Accepted Answer

A) True 
 B)False

Question 20

In international marketing,which of the following pricing objectives is used when products are associated with intangible benefits,such as high quality,exclusiveness,or attractive design?

Accepted Answer

A)  Profitability objective 
B)  Volume objective 
C)  Meeting-competition objective 
D)  Prestige objective 
A)  Profitability objective 
B)  Volume objective 
C)  Meeting-competition objective 
D)  Prestige objective

Exam 18: Pricing Concepts

Explain the concept of marginal analysis.

A local apparel shop sets prices by adding a 45 percent markup to the invoice price charged by the supplier.This method of pricing is known as _____ pricing.

Cost-plus pricing is the least popular method of setting prices.

Prestige pricing objectives emphasize:

The _____ of demand is the percentage change in the quantity of a good or service demanded divided by the percentage change in its price.

Every "regulatory" price increase is a tax.

_____ are volume-related pricing objectives that have the goal of controlling a portion of the market for a firm's product.

Demand often shows:

Define price.Explain why setting prices can be a difficult process.

Identify and discuss the major categories of pricing objectives used by for-profit organizations.

Prices of electronic equipment and automobiles tend to fluctuate far less than prices of crops such as sugarcane and bananas.

Sales maximization can also result from nonprice factors such as service and quality.

The breakeven point is the point at which total revenue equals total cost.

The pricing technique used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost is known as _____ analysis.

Statutes enacted in most states that once permitted manufacturers to stipulate a minimum retail price for their product are called _____.

List the four types of market structures based on the economic theory,and provide an example of an industry or business for each of the four types.

Statutes enacted in most states that once permitted manufacturers to stipulate a minimum retail price for their product are called _____.

The practice of adding a percentage of specified dollar amount-or markup-to the base cost of a product to cover unassigned costs and to provide a profit is known as _____.

Demand curves must be based on marketing research estimates that may be less exact than cost figures.

In international marketing,which of the following pricing objectives is used when products are associated with intangible benefits,such as high quality,exclusiveness,or attractive design?

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