Exam 18: Pricing Concepts

In the context of pricing objectives,which of the following is the purpose of adopting a profitability objective?

The term "tariff" refers to the tax exemption granted to domestic producers in order to increase their competitiveness in the international markets.

Many firms attempt to promote stable prices by meeting competitors' prices and competing for market share by focusing on the nonprice elements of the marketing mix.

A schedule of the amounts of a firm's product that consumers will purchase at different prices during a specified time period is referred to as _____.

Defense based on cost differentials against charges of price discrimination under the Robinson-Patman Act works only if the price differences exceed the cost differences resulting from selling to various classes of buyers.

Which of the following is a market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price?

Basic so-called fighting brands are intended to capture market share from lower-priced competitors by offering relatively high quality products at comparatively higher prices.

Firms which use a volume objective to guide their pricing strategy believe that increased sales are less important in the long-run competitive picture than immediate high profits.

Marginal revenue is the change in total revenue that results from selling an additional unit of output.

When a chain store sells certain products below cost to attract customers,it is practicing a loss-leader price tactic.

The Robinson-Patman Act was intended primarily to save jobs.

A cost that changes with the level of production is called a(n)_____ cost.

High-demand sporting or concert events have encountered an expensive,often illegal,form of pricing where tickets are resold at a much higher price than what it was originally bought for.This practice is called ticket scalping.

Assume that the per unit price of a product is $100,total fixed costs are $50,000,and variable costs are $70 per unit.Find the breakeven point (in both units and dollars).

Full-cost pricing allocates fixed costs that can be directly attributed to the production of the specific priced item.

A firm minimizes its profits when marginal costs equal marginal revenues.

The exchange value of a good or service defines its:

When most of a firm's costs are fixed over a wide range of outputs,the primary determinant of profitability will be the:

Which of the following is a market structure in which relatively few sellers compete and where high start-up costs form barriers to keep out new competitors?

One of the advantages of the full-cost pricing approach is that it takes into consideration the competition and demand that exists for a product.