Exam 18: Pricing Concepts

Modified breakeven analysis forces the marketer to consider whether the consumer is likely to purchase the number of units of a good or service required for achieving breakeven at a given price.

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

The economic theory assumes that firms behave rationally which in turn results in an effort to maximize gains and minimize losses.

Increased options available to shoppers combine to create a market characterized by _____ elasticity.

When the elasticity of demand or supply is greater than 1.0,then that demand or supply is said to be inelastic.

In which of the following types of market structures would a producer have the least amount of influence in setting prices?

A pricing strategy that allows marketers to vary prices based on such factors as demand,even though the cost of providing those goods or services remains the same,is known as _____.

Explain market-share objectives.

In an oligopolistic market,high start-up costs form significant barriers to entry for new competitors.

What are the major weaknesses of traditional breakeven analysis?

Which of the following market structure is characterized by the non-existence of direct competitors?

A market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes is referred to as a(n)_____.

Countries that export international commodities,such as wood,chemicals,and agricultural crops,suffer economically when their prices fluctuate.

Unfair-trade laws were intended to protect small specialty shops,such as dairy stores,from loss-leader pricing tactics.

A firm maximizes its profits when:

When a State decides to double the tax on alcoholic beverages and consequently,increases their market price,the State is aiming at:

The only real difference among the multitude of cost-plus pricing techniques is the relative sophistication of the costing procedures employed.

Firms with large shares accumulate greater operating experience and lower overall costs relative to competitors with smaller market shares.

Which of the following is true of price determination in economic theory?

Short-run or long-run pricing objectives of achieving a specified return on either sales or investment are known as _____ objectives.