Question 1

A cost that remains stable at any production level within a certain range is called a(n)_____ cost.

Accepted Answer

A) variable 
B) fixed 
C) average total 
D) marginal 
A) variable 
B) fixed 
C) average total 
D) marginal

Question 2

All firms attempt to maximize profits.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the benefits of modified breakeven analysis.

Accepted Answer

The benefits of modified breakeven analy

Question 4

Sales maximization can also result from nonprice factors such as service and quality.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Fair-trade laws assert the manufacturer's authority to protect its asset by requiring retailers to maintain a minimum price.

Accepted Answer

A) True 
 B)False

Question 7

Yield management is strategic control of inventory.It maximizes revenue or profits from fixed perishable resources. ​
​What are the three rights of yield management?

Accepted Answer

A) ​right revenue at the right point of sale for the right items 
B) ​right features at the right time for the right cost 
C) ​right customer at the right time for the right price 
D) ​right estimated price at the right location for the right time 
E) ​right person at the right location for the right cost 
A) ​right revenue at the right point of sale for the right items 
B) ​right features at the right time for the right cost 
C) ​right customer at the right time for the right price 
D) ​right estimated price at the right location for the right time 
E) ​right person at the right location for the right cost

Question 8

The breakeven point is the point at which:

Accepted Answer

A) revenue from sales equals the variable cost of the product. 
B) the supply curve intersects the demand curve. 
C) total revenue from sales equals total cost. 
D) marginal cost runs above the marginal revenue curve. 
A) revenue from sales equals the variable cost of the product. 
B) the supply curve intersects the demand curve. 
C) total revenue from sales equals total cost. 
D) marginal cost runs above the marginal revenue curve.

Question 9

Which of the following is a market structure in which only one seller of a product exists and for which there are no close substitutes?

Accepted Answer

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

Question 10

The Swim Store is a manufacturer and ​distributor of swim-related products for competitive swimming athletes and also offer products for lifeguards.They are expanding their reach to Europe and believe their line of products will be well received however,due to the adoption of the Euro single currency system,competition is strong.Which pricing objective would be most appropriate for the company as they expand to the European Union markets?

Accepted Answer

A) ​meeting competition 
B) ​profitability 
C) ​prestige 
D) ​stability 
A) ​meeting competition 
B) ​profitability 
C) ​prestige 
D) ​stability

Question 11

What are the practical problems involved in applying price theory concepts to actual pricing decision?

Accepted Answer

Marketers may thoroughly understand pric

Question 12

Prestige objectives reflect marketers' recognition of the role of price in creating an overall image of the firm and its product offerings.

Accepted Answer

A) True 
 B)False

Question 13

The pricing technique used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost is known as _____ analysis.

Accepted Answer

A) cost-plus 
B) marginal 
C) breakeven 
D) incremental-cost 
A) cost-plus 
B) marginal 
C) breakeven 
D) incremental-cost

Question 14

Jennifer is looking for a wedding present for her fiance and is considering buying him a watch.She likes luxury items and is willing to spend between $4,000 and $10,000 on the gift.She visits several jewelry stores and realizes that the prices are the same for Rolex and Philippe Patek brand watches and each store tells her these brands are never discounted.What type of pricing objective is utilized by Rolex and Philippe Patek?​

Accepted Answer

A) ​prestige 
B) ​profit 
C) ​volume 
D) ​meeting competitors 
A) ​prestige 
B) ​profit 
C) ​volume 
D) ​meeting competitors

Question 15

In which of the following market structures individual firms have the highest control over product prices?

Accepted Answer

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

Question 16

A 5 percent increase in the price of milk that results in a 2 percent decrease in the quantity of milk demanded yields a price elasticity of demand for milk of:

Accepted Answer

A) 0.5. 
B) 0.4. 
C) 1.0. 
D) 1.4. 
A) 0.5. 
B) 0.4. 
C) 1.0. 
D) 1.4.

Question 17

Which of the following products would most likely have an inelastic demand curve?​

Accepted Answer

A) ​HP genuine ink for an HP printer 
B) paper towels​ 
C) ​photocopier paper 
D) ​pencils 
A) ​HP genuine ink for an HP printer 
B) paper towels​ 
C) ​photocopier paper 
D) ​pencils

Question 18

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

Accepted Answer

A) supply 
B) linear 
C) demand 
D) constant 
A) supply 
B) linear 
C) demand 
D) constant

Question 19

A 5 percent increase in the price of corn flour that results in a 15 percent increase in the quantity supplied yields a price elasticity of supply for corn flour of:

Accepted Answer

A) 2.0. 
B) 2.5. 
C) 3.0. 
D) 3.5. 
A) 2.0. 
B) 2.5. 
C) 3.0. 
D) 3.5.

Question 20

​You are reevaluating the pricing policy of Fruit World,a United States restaurant supplier which imports exotic produce from Mexico and Spain.Because of increased competition,you want to promise customers that your prices are the lowest on the market.Which of the following approaches would most likely enable you to fulfill this promise with minimal impact to Fruit World's profits?

Accepted Answer

A) ​Increase your imports from Spain and reduce those from Mexico. 
B) ​Increase your imports from Mexico and reduce those from Spain. 
C) ​Drop prices equally on all your imports from both countries. 
D) ​Eliminate imports from countries that belong to NAFTA. 
E) ​Improve your overseas supply chain serving both countries. 
A) ​Increase your imports from Spain and reduce those from Mexico. 
B) ​Increase your imports from Mexico and reduce those from Spain. 
C) ​Drop prices equally on all your imports from both countries. 
D) ​Eliminate imports from countries that belong to NAFTA. 
E) ​Improve your overseas supply chain serving both countries.

A cost that remains stable at any production level within a certain range is called a(n)_____ cost.

All firms attempt to maximize profits.

Discuss the benefits of modified breakeven analysis.

Sales maximization can also result from nonprice factors such as service and quality.

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

Fair-trade laws assert the manufacturer's authority to protect its asset by requiring retailers to maintain a minimum price.

Yield management is strategic control of inventory.It maximizes revenue or profits from fixed perishable resources. What are the three rights of yield management?

The breakeven point is the point at which:

Which of the following is a market structure in which only one seller of a product exists and for which there are no close substitutes?

What are the practical problems involved in applying price theory concepts to actual pricing decision?

Prestige objectives reflect marketers' recognition of the role of price in creating an overall image of the firm and its product offerings.

The pricing technique used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost is known as _____ analysis.

In which of the following market structures individual firms have the highest control over product prices?

A 5 percent increase in the price of milk that results in a 2 percent decrease in the quantity of milk demanded yields a price elasticity of demand for milk of:

Which of the following products would most likely have an inelastic demand curve?

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

A 5 percent increase in the price of corn flour that results in a 15 percent increase in the quantity supplied yields a price elasticity of supply for corn flour of:

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

Exam 18: Pricing Concepts

A cost that remains stable at any production level within a certain range is called a(n)_____ cost.

All firms attempt to maximize profits.

Discuss the benefits of modified breakeven analysis.

Sales maximization can also result from nonprice factors such as service and quality.

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

Fair-trade laws assert the manufacturer's authority to protect its asset by requiring retailers to maintain a minimum price.

Yield management is strategic control of inventory.It maximizes revenue or profits from fixed perishable resources. ​ ​What are the three rights of yield management?

The breakeven point is the point at which:

Which of the following is a market structure in which only one seller of a product exists and for which there are no close substitutes?

What are the practical problems involved in applying price theory concepts to actual pricing decision?

Prestige objectives reflect marketers' recognition of the role of price in creating an overall image of the firm and its product offerings.

The pricing technique used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost is known as _____ analysis.

In which of the following market structures individual firms have the highest control over product prices?

A 5 percent increase in the price of milk that results in a 2 percent decrease in the quantity of milk demanded yields a price elasticity of demand for milk of:

Which of the following products would most likely have an inelastic demand curve?​

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

A 5 percent increase in the price of corn flour that results in a 15 percent increase in the quantity supplied yields a price elasticity of supply for corn flour of:

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

Yield management is strategic control of inventory.It maximizes revenue or profits from fixed perishable resources. What are the three rights of yield management?

Which of the following products would most likely have an inelastic demand curve?