Exam 13: Building the Price Foundation

Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds.It sells these items as a neutralizing kit priced at $100.The costs of the materials that go into each kit are $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 in trade journals,and $3,500 for the monthly salary of its owner.What is Ampro-Mag's monthly break-even point in terms of number of neutralizing kits sold?

The message of marginal analysis is to operate up to the quantity and price levels where __________.

Using Figure 13-4 above,how much price competition is likely for bushels of wheat?

The vertical axis of a demand curve graph represents __________.

With over half of tickets to major events sold online,StubHub's website can help generate extra ticket sales for the original sponsors.This is why

The formula,Total revenue − Total cost or [(Unit price × Quantity sold)− (Fixed cost + Variable cost)] represents __________.

The competitive market situation in which many sellers compete on nonprice factors is referred to as

All of the following are synonyms for price EXCEPT:

The average amount of money received for selling one unit of a product,or simply the price of that unit,is referred to as __________.

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

A target return profit objective implies that a company chooses to

Figure 13-5B above shows that when the quantity demanded for Red Baron frozen cheese pizzas moves from 2 to 3 million units from the demand curve D₁ to the demand curve D₂,the profit

Forever Quilting is a small company that makes quilting kits priced at $120.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.Forever Quilting's unit variable cost for its kits is

A reference value involves comparing the costs and benefits of __________.

If competitive market circumstances are such that there is no price competition,no product differentiation,and the purpose of advertising is to increase demand for the product class,then __________ must exist in the industry.

The quantity at which total revenue and total cost are equal is referred to as (the)

A maximizing current profit objective implies that a company chooses to

Given that a firm's profit is high enough for it to remain in business,an objective may be to __________,which will in turn lead to increases in market share and profit.

The particular type of competition dramatically influences the range of price competition and,in turn,

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?