Question 1

All of these statements about price are true exceptwhich?

Accepted Answer

A)   Small changes in price can have big effects on both the number of units sold and company profit.
B)   The price for a product or service must earn a profit for the company.
C)   For most products and services, there is an agreed-upon price range set by makers.
D)   The price must be "right"-in the sense that customers must be willing to pay it.
E)   The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product.F) A) and B)
G) A) and E)

Question 2

The unit variable cost (UVC)  equals variable cost (VC)  divided by

Accepted Answer

A)   quantity (Q) .
B)   fixed costs (F
C)  .
C)   total cost (T
C)  .
D)   total revenue (TR) .
E)   price per unit of the product (P) .F) D) and E)
G) B) and D)

Question 3

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

Accepted Answer

A)   As the availability of close substitutes increases, the demand for a product increases.
B)   As real consumer income increases, the demand for a product increases.
C)   As the price of close substitutes increases, the demand for a product declines.
D)   Changing consumer tastes have little impact on the demand for a product.
E)   As real consumer income decreases, the demand for a product increases.F) C) and E)
G) A) and B)

Question 4

The owner of a small restaurant that sells takeout fried chicken and biscuits each month pays $2,500 in rent, $500 in utilities, $750 interest on his loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many buckets of chicken does the restaurant need to sell to break even each month?

Accepted Answer

A)   442 buckets
B)   764 buckets
C)   1,050 buckets
D)   3,150 buckets
E)   4,200 bucketsF) B) and D)
G) None of the above

Question 5

Figure 13-6
-The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity, price, revenue, cost, and profit scenarios shown in Figure 13-6 above. Of the following options, at what sales level is profit maximized?

Accepted Answer

A)   0
B)   400
C)   800
D)   1,200
E)   2,000F) A) and C)
G) A) and B)

Question 6

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself)  is referred to as

Accepted Answer

A)   target return on sales.
B)   industry profit.
C)   unit volume.
D)   market share.
E)   profit.F) A) and B)
G) A) and C)

Question 7

Figure 13-3
-In Figure 13-3 above, column A represents which type of competitive market?

Accepted Answer

A)   an oligopoly
B)   monopolistic competition
C)   a pure monopoly
D)   pure competition
E)   oligopolistic competitionF) B) and E)
G) B) and C)

Question 8

Which of these statements regarding sales goals is most accurate?

Accepted Answer

A)   For marketing managers, sales revenue or unit sales objectives can be easily translated into meaningful targets for a product line or brand.
B)   Cutting prices for a single product in a product line to raise unit sales often results in an increase in sales for related products in the line.
C)   Very often, cutting prices results in a decrease in market share.
D)   Setting unit volume sales as a pricing objective results in price wars with competitors, so the practice is limited to industries with few competitors.
E)   An advantage of increasing unit volume sales is that it always results in an increase in profits.F) A) and E)
G) A) and D)

Question 9

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price is referred to as

Accepted Answer

A)   value pricing.
B)   customer-value pricing.
C)   competitive pricing.
D)   cost pricing.
E)   demand pricing.F) B) and E)
G) None of the above

Question 10

Figure 13-3
-In Figure 13-3 above, column C represents which type of competitive market?

Accepted Answer

A)   an oligopoly
B)   monopolistic competition
C)   a pure monopoly
D)   pure competition
E)   oligopolistic competitionF) A) and E)
G) B) and C)

Question 11

Describe a profit objective used by many Japanese manufacturing firms.

Accepted Answer

Managing for long-run profits is a prici...

Question 12

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

Accepted Answer

A)   Internet price changes are regulated by the Internet Fair Practices Act to protect consumers against price gouging.
B)   The seller's price is constrained by the type of competitive market within which it competes.
C)   Price changes cannot be regulated in a monopoly.
D)   The type of market has little or no impact on a firm in a monopolistic competitive environment.
E)   Competitive environments should affect a firm's pricing objectives, but not its actual product prices.F) A) and B)
G) A) and C)

Question 13

VIZIO is the market leader in the North American ________ market.

Accepted Answer

A)   designer eyewear
B)   broadcast media
C)   smart TV
D)   virtual reality gaming
E)   luxury travelF) A) and D)
G) D) and E)

Question 14

To increase value, marketers may ________, decrease price, or do both.

Accepted Answer

A)   decrease promotion
B)   increase benefits
C)   decrease distribution
D)   increase advertising
E)   allow the perceived value of the item to increase as it matures in the life cycleF) A) and C)
G) C) and E)

Question 15

According to the profit equation, profit equals

Accepted Answer

A)   Total cost + Total revenue.
B)   Total revenue − Total cost.
C)   Marginal revenue − Marginal cost.
D)   Price × Quantity.
E)   Total revenue + Marginal cost.F) All of the above
G) A) and E)

Question 16

Figure 13-7B
-Suppose you are the owner of a picture frame store. Assume that the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC)  total $32,000 (real estate taxes, interest on a bank loan, etc.)  and unit variable cost (UVC)  for a picture frame is $40 (labor, glass, frame, and matting) . According to Figure 13-7 above, how much profit will your picture frame store make if it sells 400 picture frames?

Accepted Answer

A)   $48,000
B)   $32,000
C)   $16,000
D)   $0
E)   ($32,000) F) All of the above
G) A) and E)

Question 17

The maximum quantity of products consumers will buy at given price is shown by a

Accepted Answer

A)   demand curve.
B)   price constraint.
C)   break-even point.
D)   supply curve.
E)   marginal revenue curve.F) C) and E)
G) A) and B)

Question 18

A firm may forgo a higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations?

Accepted Answer

A)   profit
B)   market share
C)   unit volume
D)   survival
E)   social responsibilityF) A) and E)
G) D) and E)

Question 19

Managing for long-run profits as a pricing objective implies that a company will

Accepted Answer

A)   give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
B)   maintain a given price range to ensure there is no loss of customers over time, even if the profit margin declines.
C)   invest excess cash in bonds and certificates of deposit in order to counteract any inflationary economic changes in the future.
D)   reinvest all profits into market research or product research rather than returned to shareholders.
E)   drop all products, product lines, or divisions that cannot maintain their pricing goals.F) C) and D)
G) B) and D)

Question 20

Forever Quilting 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

Accepted Answer

A)   $5.
B)   $45.
C)   $50.
D)   $120.
E)   $170.F) All of the above
G) C) and D)

Exam 13: Building the Price Foundation

A firm may forgo a higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations?

Correct Answer
verified

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

Correct Answer
verified

Which of these statements regarding sales goals is most accurate?

Correct Answer
verified

Figure 13-6 -The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity, price, revenue, cost, and profit scenarios shown in Figure 13-6 above. Of the following options, at what sales level is profit maximized?

Correct Answer
verified

Describe a profit objective used by many Japanese manufacturing firms.

Correct Answer
verified
Managing for long-run profits is a prici...
View Answer

According to the profit equation, profit equals

Correct Answer
verified

Correct Answer
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Figure 13-3 -In Figure 13-3 above, column A represents which type of competitive market?

Correct Answer
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To increase value, marketers may ________, decrease price, or do both.

Correct Answer
verified

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price is referred to as

Correct Answer
verified

Correct Answer
verified

The maximum quantity of products consumers will buy at given price is shown by a

Correct Answer
verified

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself) is referred to as

Correct Answer
verified

All of these statements about price are true exceptwhich?

Correct Answer
verified

Managing for long-run profits as a pricing objective implies that a company will

Correct Answer
verified

The unit variable cost (UVC) equals variable cost (VC) divided by

Correct Answer
verified

Figure 13-3 -In Figure 13-3 above, column C represents which type of competitive market?

Correct Answer
verified

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

Correct Answer
verified

VIZIO is the market leader in the North American ________ market.

Correct Answer
verified

Correct Answer
verified

Exam 13: Building the Price Foundation

A firm may forgo a higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of these statements regarding sales goals is most accurate?

Correct AnswerverifiedShow Answer

Figure 13-6 -The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity, price, revenue, cost, and profit scenarios shown in Figure 13-6 above. Of the following options, at what sales level is profit maximized?

Correct AnswerverifiedShow Answer

Describe a profit objective used by many Japanese manufacturing firms.

Correct AnswerverifiedManaging for long-run profits is a prici...View AnswerShow Answer

According to the profit equation, profit equals

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 13-3 -In Figure 13-3 above, column A represents which type of competitive market?

Correct AnswerverifiedShow Answer

To increase value, marketers may ________, decrease price, or do both.

Correct AnswerverifiedShow Answer

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price is referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The maximum quantity of products consumers will buy at given price is shown by a

Correct AnswerverifiedShow Answer

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself) is referred to as

Correct AnswerverifiedShow Answer

All of these statements about price are true exceptwhich?

Correct AnswerverifiedShow Answer

Managing for long-run profits as a pricing objective implies that a company will

Correct AnswerverifiedShow Answer

The unit variable cost (UVC) equals variable cost (VC) divided by

Correct AnswerverifiedShow Answer

Figure 13-3 -In Figure 13-3 above, column C represents which type of competitive market?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

VIZIO is the market leader in the North American ________ market.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Managing for long-run profits is a prici...
View Answer

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