Question 1

A pricing method that attempts to use only costs directly attributable to a specific output in setting prices 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 2

Which of the following is also known as the Anti-A&P Act?

Accepted Answer

A)  The Clayton Act of 1914 
B)  The Robinson-Patman Act of 1936 
C)  The Miller-Tydings Resale Price Maintenance Act of 1937 
D)  The Consumer Goods Pricing Act of 1975 
A)  The Clayton Act of 1914 
B)  The Robinson-Patman Act of 1936 
C)  The Miller-Tydings Resale Price Maintenance Act of 1937 
D)  The Consumer Goods Pricing Act of 1975

Question 3

The average total cost is the cost calculated by dividing the sum of the variable and fixed costs by the number of units produced.

Accepted Answer

A) True 
 B)False

Question 4

Discuss the benefits of modified breakeven analysis.

Accepted Answer

The benefits of modified breakeven analy

Question 5

The change in total cost that results from producing an additional unit of output is called _____ cost.

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 6

Which of the following is a practical problem involved in applying price theory concepts to actual pricing decisions?

Accepted Answer

A)  All firms attempt to maximize profits. 
B)  It is difficult to estimate demand curves. 
C)  It is difficult to comprehend the supply side of the pricing equation. 
D)  Supply curves must be based on marketing estimates. 
A)  All firms attempt to maximize profits. 
B)  It is difficult to estimate demand curves. 
C)  It is difficult to comprehend the supply side of the pricing equation. 
D)  Supply curves must be based on marketing estimates.

Question 7

Purely cost-oriented approaches to pricing violate the marketing concept,so modifications that add demand analysis to the pricing decision are required.

Accepted Answer

A) True 
 B)False

Question 8

Firms that adopt volume objectives believe that:

Accepted Answer

A)  companies should focus on maximizing profits rather than maximizing sales. 
B)  companies should continue to expand sales as long as their total profits do not drop below a specified minimum return. 
C)  companies should focus on the image and prestige associated with their products. 
D)  companies should offer huge discounts even at the cost of running into losses with their products. 
A)  companies should focus on maximizing profits rather than maximizing sales. 
B)  companies should continue to expand sales as long as their total profits do not drop below a specified minimum return. 
C)  companies should focus on the image and prestige associated with their products. 
D)  companies should offer huge discounts even at the cost of running into losses with their products.

Question 9

Pricing can be used to modify consumer behavior.

Accepted Answer

A) True 
 B)False

Question 10

Economic theory attempts to derive correct equilibrium prices in the marketplace by comparing supply and demand.

Accepted Answer

A) True 
 B)False

Question 11

_____ are taxes levied on the sale of imported goods and services.

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 12

Analysis has shown that ingredients account for less than 5 percent of a perfume's cost.So if a perfume costs $135 or more per ounce,it reflects the marketer's adoption of a pricing objective that focuses on:

Accepted Answer

A)  expanding market share. 
B)  creating image or prestige. 
C)  meeting competitors' prices. 
D)  maximizing sales. 
A)  expanding market share. 
B)  creating image or prestige. 
C)  meeting competitors' prices. 
D)  maximizing sales.

Question 13

Which of the following is employed by theatrical productions when they charge higher prices for their weekend shows than for the shows on weekdays even though the cost of producing the show remains the same on all days?

Accepted Answer

A)  Modified breakeven analysis 
B)  Yield management 
C)  Incremental pricing 
D)  Marginal pricing 
A)  Modified breakeven analysis 
B)  Yield management 
C)  Incremental pricing 
D)  Marginal pricing

Question 14

Total revenue is determined by multiplying the product's selling price and the number of units sold.

Accepted Answer

A) True 
 B)False

Question 15

A pricing strategy that emphasizes benefits of a product in comparison to the price and quality levels of competing offerings is called _____ pricing.

Accepted Answer

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

Question 16

Which of the following pricing objectives reflects marketers' recognition of the role of price in creating an overall image of the firm and its product offerings?

Accepted Answer

A)  A profitability objective 
B)  A volume objective 
C)  A meeting competition objective 
D)  A prestige objective 
A)  A profitability objective 
B)  A volume objective 
C)  A meeting competition objective 
D)  A prestige objective

Question 17

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

Under which of the following conditions is a product most likely to have an elastic demand?

Accepted Answer

A)  Consumers can easily find close substitutes for the product. 
B)  The marginal cost of producing the product is equal to its marginal revenue. 
C)  A large portion of a person's budget is spent on the product. 
D)  The fixed costs associated with producing the product are higher than the variable costs associated with it. 
A)  Consumers can easily find close substitutes for the product. 
B)  The marginal cost of producing the product is equal to its marginal revenue. 
C)  A large portion of a person's budget is spent on the product. 
D)  The fixed costs associated with producing the product are higher than the variable costs associated with it.

Question 19

A market structure in which relatively few sellers compete and where high start-up costs form barriers to keep out new competitors is referred to as a(n)_____.

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 20

The government prohibits regulated monopolies in markets in which competition would lead to an uneconomical duplication of services.

Accepted Answer

A) True 
 B)False

Exam 18: Pricing Concepts

A pricing method that attempts to use only costs directly attributable to a specific output in setting prices is known as _____.

Which of the following is also known as the Anti-A&P Act?

The average total cost is the cost calculated by dividing the sum of the variable and fixed costs by the number of units produced.

Discuss the benefits of modified breakeven analysis.

The change in total cost that results from producing an additional unit of output is called _____ cost.

Which of the following is a practical problem involved in applying price theory concepts to actual pricing decisions?

Purely cost-oriented approaches to pricing violate the marketing concept,so modifications that add demand analysis to the pricing decision are required.

Firms that adopt volume objectives believe that:

Pricing can be used to modify consumer behavior.

Economic theory attempts to derive correct equilibrium prices in the marketplace by comparing supply and demand.

_____ are taxes levied on the sale of imported goods and services.

Analysis has shown that ingredients account for less than 5 percent of a perfume's cost.So if a perfume costs $135 or more per ounce,it reflects the marketer's adoption of a pricing objective that focuses on:

Which of the following is employed by theatrical productions when they charge higher prices for their weekend shows than for the shows on weekdays even though the cost of producing the show remains the same on all days?

Total revenue is determined by multiplying the product's selling price and the number of units sold.

A pricing strategy that emphasizes benefits of a product in comparison to the price and quality levels of competing offerings is called _____ pricing.

Which of the following pricing objectives reflects marketers' recognition of the role of price in creating an overall image of the firm and its product offerings?

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

Under which of the following conditions is a product most likely to have an elastic demand?

A market structure in which relatively few sellers compete and where high start-up costs form barriers to keep out new competitors is referred to as a(n)_____.

The government prohibits regulated monopolies in markets in which competition would lead to an uneconomical duplication of services.

Marketing: The Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

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Global Marketing

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Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, Wholesalers, and Direct Marketers

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Pricing Strategies

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