Exam 13: Building the Price Foundation

A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold is referred to as a

The total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and variable cost, is referred to as

Susan O'Rourke hired an attorney to represent her in a court case involving an auto accident. The attorney charged O'Rourke a $2,000 retainer fee for his services. Terry Thomas needed a haircut; the local stylist charged him $12 for her services. Aaron Mathison mowed his neighbor's lawn; in exchange, the neighbor rototilled Mathison's garden. The attorney fees paid by O'Rourke, the $12 charged by the hair stylist, and the exchange of lawn mowing for garden tilling are all examples of

The ratio of __________ to price is referred to as value.

Three different objectives relate to a firm's profit, which have different implications for pricing strategy. The three profit-oriented objectives include managing for long-run profits, maximizing current profit objectives, and

Washburn Guitars markets its guitars to four distinct market segments. The firm's batch-custom instruments are targeted at

Campbell Soup spent seven years and $55 million on a secret project to produce a line of Intelligent Quisine (IQ) food products "scientifically proven to lower high levels of cholesterol, blood sugar, and blood pressure." The company was responding to the needs and desires expressed by consumers. However, after 15 months in an Ohio test market, Campbell Soup yanked the entire IQ line because

Which of the following is a typical example of a variable cost?

Inelastic demand exists when

Basic to setting a product's price is the extent of __________. This information is used in estimating the revenues the firm expects to receive.

Economists have identified four types of competitive markets: pure monopoly, monopolistic competition, oligopoly, and

Forever Quilting is a small company that makes quilting kits priced at $120 each. There is no quantity discount. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Last month the company sold 150 kits. Forever Quilting's total revenue for the month was

Which of the following statements is most accurate?

When estimating demand, price is not the only factor to be considered. Three other elements emphasized by economists are consumer tastes, price and availability of similar products, and

The marketing director for __________ is most likely to believe the following statement: "The purpose of advertising is to increase demand for the product class."

Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is

Pricing objectives refers to

Which of the following statements regarding the seller's price is most accurate?

Which of the following statements about the factors that influence demand is true?

Total revenue refers to