Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Identify and briefly describe the legal constraints placed on pricing.

Accepted Answer

The legal constraints placed on pricing

Question 3

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 4

In an oligopolistic market,a single seller controls the pricing decisions.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

If consumers can easily find close substitutes for a good or service,the product's demand tends to be inelastic.
Indicate the answer choice that best completes the statement or answers the question.

Accepted Answer

A) True 
 B)False

Question 7

The A.G.Harding company has been charged with price discrimination under the federal Robinson-Patman Act.Which of the following would be the best defense against the charge?

Accepted Answer

A) The price differential is justified as they do not exceed the cost differences resulting from selling to various classes of buyers. 
B) The price differential is justified as it reflects the efficiency of its sales personnel. 
C) The price differential is justified because the company is a leader in the specific product market. 
D) The price differential is justified as the company's products comply with the ISO standards. 
A) The price differential is justified as they do not exceed the cost differences resulting from selling to various classes of buyers. 
B) The price differential is justified as it reflects the efficiency of its sales personnel. 
C) The price differential is justified because the company is a leader in the specific product market. 
D) The price differential is justified as the company's products comply with the ISO standards.

Question 8

Countries that export value- oriented products,rather than commodities,tend to enjoy more stable prices.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a limitation of breakeven analysis?​

Accepted Answer

A) ​consumer demand for products or services is not considered 
B) ​the analysis fails to separate fixed costs from variable costs 
C) ​the calculations assume that per-unit variable costs will change as different amounts are produced 
D) ​it is difficult to understand and apply 
A) ​consumer demand for products or services is not considered 
B) ​the analysis fails to separate fixed costs from variable costs 
C) ​the calculations assume that per-unit variable costs will change as different amounts are produced 
D) ​it is difficult to understand and apply

Question 10

Profits typically are higher when an incremental-cost pricing approach is utilized.​

Accepted Answer

A) True 
 B)False

Question 11

When New Orleans' Holy Cross School organizes a $500-per-person concert to raise funds for the operation of the school,their organizational goal is to:

Accepted Answer

A) maximize their profits. 
B) implement value pricing. 
C) suppress the market. 
D) provide market incentives. 
A) maximize their profits. 
B) implement value pricing. 
C) suppress the market. 
D) provide market incentives.

Question 12

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?

Accepted Answer

A) Pure competition 
B) Monopolistic competition 
C) Monopoly 
D) Oligopoly 
A) Pure competition 
B) Monopolistic competition 
C) Monopoly 
D) Oligopoly

Question 13

Which of the following is true of pure competition?

Accepted Answer

A) It is a market structure with very few sellers. 
B) It presupposes a market condition where start-up costs are high for sellers. 
C) It is a market structure with very few buyers. 
D) It presupposes a market condition where sellers produce homogenous products. 
A) It is a market structure with very few sellers. 
B) It presupposes a market condition where start-up costs are high for sellers. 
C) It is a market structure with very few buyers. 
D) It presupposes a market condition where sellers produce homogenous products.

Question 14

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

Accepted Answer

A) Pure competition 
B) Monopolistic competition 
C) Oligopoly 
D) Monopoly 
A) Pure competition 
B) Monopolistic competition 
C) Oligopoly 
D) Monopoly

Question 15

Which of the following actions is most likely to be taken by a company in order to implement the value pricing objective?

Accepted Answer

A) Distributing free samples of the product to create awareness about the product among the consumers 
B) Convincing consumers that the quality of their lower-priced product is the same as that of a comparatively higher-priced product sold by a competitor 
C) Convincing consumers of the prestige associated with the product 
D) Distributing free gifts along with the product during its introductory stage 
A) Distributing free samples of the product to create awareness about the product among the consumers 
B) Convincing consumers that the quality of their lower-priced product is the same as that of a comparatively higher-priced product sold by a competitor 
C) Convincing consumers of the prestige associated with the product 
D) Distributing free gifts along with the product during its introductory stage

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

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

Accepted Answer

The four major categories of pricing obj

Question 18

The Robinson-Patman Act specifically prohibits:

Accepted Answer

A) imposing taxes on the products that are being exported to other countries. 
B) earning excess profits, that is, more than the average for an industry. 
C) price discrimination in sales to wholesalers, retailers, and other producers. 
D) charging the same price to everyone for everything you sell. 
A) imposing taxes on the products that are being exported to other countries. 
B) earning excess profits, that is, more than the average for an industry. 
C) price discrimination in sales to wholesalers, retailers, and other producers. 
D) charging the same price to everyone for everything you sell.

Question 19

Match each item with the correct statement below.
-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 20

Match each item with the correct statement below.
-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 _____.

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

Exam 18: Pricing Concepts

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

Identify and briefly describe the legal constraints placed on pricing.

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

In an oligopolistic market,a single seller controls the pricing decisions.

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

If consumers can easily find close substitutes for a good or service,the product's demand tends to be inelastic. Indicate the answer choice that best completes the statement or answers the question.

The A.G.Harding company has been charged with price discrimination under the federal Robinson-Patman Act.Which of the following would be the best defense against the charge?

Countries that export value- oriented products,rather than commodities,tend to enjoy more stable prices.

Which of the following is a limitation of breakeven analysis?​

Profits typically are higher when an incremental-cost pricing approach is utilized.​

When New Orleans' Holy Cross School organizes a $500-per-person concert to raise funds for the operation of the school,their organizational goal is to:

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?

Which of the following is true of pure competition?

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

Which of the following actions is most likely to be taken by a company in order to implement the value pricing objective?

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.

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

The Robinson-Patman Act specifically prohibits:

Match each item with the correct statement below. -A schedule of the amounts of a firm's product that consumers will purchase at different prices during a specified time period is called _____.

Match each item with the correct statement below. -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 _____.

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

Business-To-Business B2bmarketing

Global Marketing

Market Segmentation, targeting, and Positioning

Marketing Research in the Era of Big Data

Relationship Marketing and Customer Relationship Management Crm

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, wholesalers, and Direct Marketers

Integrated Marketing Communications, advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Strategies

Developing an Effective Marketing Plan

Financial Analysis in Marketing

Filters

Which of the following is a limitation of breakeven analysis?

Profits typically are higher when an incremental-cost pricing approach is utilized.