Question 1

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

Accepted Answer

A)  pure competition.
B)  government-dominated.
C)  capitalist.
D)  socialist.
E)  communist.F) B) and D)
G) A) and B)

Question 2

What factors determine price elasticity of demand?

Accepted Answer

Price elasticity of demand is determined...

Question 3

Explain the price equation in the context of a new car purchase.

Accepted Answer

The price equation is: Final price = Lis...

Question 4

The newer a product and the earlier it is in its life cycle,

Accepted Answer

A)  the lower the price the firm must charge.
B)  the more competition it has.
C)  the higher is the price that can usually be charged.
D)  the lower its production costs are.
E)  the lower its unit variable cost is.F) C) and E)
G) B) and D)

Question 5

Barter is the practice of exchanging products and services for other products and services rather than for

Accepted Answer

A)  value.
B)  ideas.
C)  promises.
D)  tariffs.
E)  money.F) A) and E)
G) B) and C)

Question 6

The ratio of perceived benefits to price is referred to as

Accepted Answer

A)  the price-quality relationship.
B)  customer-value pricing.
C)  value-added pricing.
D)  value analysis.
E)  value.F) A) and B)
G) C) and D)

Question 7

Pure monopoly is the competitive market situation where

Accepted Answer

A)  many sellers follow market price for identical,commodity products.
B)  one seller sets the price for a unique product.
C)  few sellers compete,and are sensitive to one another's prices.
D)  many sellers compete on nonprice factors.
E)  one or a few sellers compete solely on nonprice factors.F) D) and E)
G) C) and E)

Question 8

Most public utilities must petition regulatory commissions in order to obtain a rate increase.Which pricing constraint does this statement demonstrate?

Accepted Answer

A)  demand for the product,class,or brand
B)  newness of product in the life cycle
C)  costs of production
D)  type of competitive market
E)  single product versus a product lineF) A) and C)
G) B) and C)

Question 9

Figure 13-7
 
-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) C) and E)
G) C) and D)

Question 10

Price elasticity of demand is determined by a number of factors,such as the availability of substitutes,the necessity of the product or service,and

Accepted Answer

A)  the cash outlay of the purchase relative to a person's disposable income.
B)  the stage of the product or service in its product life cycle.
C)  the degree of carrying costs for the manufacturer or distributor.
D)  the financial resources of the organization itself.
E)  the ability of the organization to meet sudden increases in demand.F) B) and D)
G) B) and E)

Question 11

Which of the following statements regarding pricing constraints is most accurate?

Accepted Answer

A)  When a product is in the introductory stage of the product life cycle,the initial price must be low since consumers still don't know what the product can really do.
B)  Patents and limited competition earlier the product life cycle mean that higher prices can usually be charged.
C)  The greater the number of products in a company's product line,the less the product features of similar products can affect price.
D)  The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
E)  To avoid cannibalization,the newest product addition to a company's product line should never have a price lower than the other offerings in the line.F) C) and E)
G) A) and B)

Question 12

From a marketing viewpoint,________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Accepted Answer

A)  value
B)  price
C)  barter
D)  currency
E)  a tariffF) A) and C)
G) A) and B)

Question 13

Insurance premiums,entrance fees,train fares,and organization dues are all examples of

Accepted Answer

A)  charges.
B)  barter.
C)  profit.
D)  price.
E)  outlays.F) C) and E)
G) B) and D)

Question 14

The sum of the firm's expenses that change with the quantity of the product that is produced and sold is referred to as

Accepted Answer

A)  fixed cost.
B)  total cost.
C)  marginal cost.
D)  unit cost.
E)  variable cost.F) C) and D)
G) B) and E)

Question 15

Demand for a product is likely to be more price elastic if it

Accepted Answer

A)  is considered a necessity.
B)  has many substitutes.
C)  is at the mature stage of the product life cycle.
D)  requires a small cash outlay.
E)  is nondiscretionary.F) A) and D)
G) None of the above

Question 16

Which of the following 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 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) C) and D)
G) A) and C)

Question 17

Ampro-Mag 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?

Accepted Answer

A)  40 kits
B)  52 kits
C)  104 kits
D)  116 kits
E)  520 kitsF) None of the above
G) B) and D)

Question 18

A firm's profit objective is often measured in terms of ROI.The acronym ROI stands for

Accepted Answer

A)  risk opportunity investment.
B)  revised organizational incentives.
C)  return on investment.
D)  regulated organizational investments.
E)  replenishment of organizational inventories.F) A) and E)
G) B) and D)

Question 19

Which of the following statements regarding sales goals is most accurate?

Accepted Answer

A)  For marketing managers,sales revenue or unit sales 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) B) and E)
G) A) and B)

Question 20

According to the price equation,a product's or service's final price equals its list price minus incentives and allowances plus

Accepted Answer

A)  profits.
B)  commissions.
C)  trade-ins.
D)  extra fees.
E)  taxes.F) A) and E)
G) A) and C)

Exam 13: Building the Price Foundation

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

Correct Answer
verified

The newer a product and the earlier it is in its life cycle,

Correct Answer
verified

According to the price equation,a product's or service's final price equals its list price minus incentives and allowances plus

Correct Answer
verified

Barter is the practice of exchanging products and services for other products and services rather than for

Correct Answer
verified

A firm's profit objective is often measured in terms of ROI.The acronym ROI stands for

Correct Answer
verified

Correct Answer
verified

The ratio of perceived benefits to price is referred to as

Correct Answer
verified

The sum of the firm's expenses that change with the quantity of the product that is produced and sold is referred to as

Correct Answer
verified

Insurance premiums,entrance fees,train fares,and organization dues are all examples of

Correct Answer
verified

What factors determine price elasticity of demand?

Correct Answer
verified
Price elasticity of demand is determined...
View Answer

Most public utilities must petition regulatory commissions in order to obtain a rate increase.Which pricing constraint does this statement demonstrate?

Correct Answer
verified

Demand for a product is likely to be more price elastic if it

Correct Answer
verified

Correct Answer
verified

Pure monopoly is the competitive market situation where

Correct Answer
verified

Which of the following statements regarding pricing constraints is most accurate?

Correct Answer
verified

Which of the following statements regarding sales goals is most accurate?

Correct Answer
verified

From a marketing viewpoint,________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Correct Answer
verified

Price elasticity of demand is determined by a number of factors,such as the availability of substitutes,the necessity of the product or service,and

Correct Answer
verified

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

Correct Answer
verified

Explain the price equation in the context of a new car purchase.

Correct Answer
verified
The price equation is: Final price = Lis...
View Answer

Exam 13: Building the Price Foundation

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

Correct AnswerverifiedShow Answer

The newer a product and the earlier it is in its life cycle,

Correct AnswerverifiedShow Answer

According to the price equation,a product's or service's final price equals its list price minus incentives and allowances plus

Correct AnswerverifiedShow Answer

Barter is the practice of exchanging products and services for other products and services rather than for

Correct AnswerverifiedShow Answer

A firm's profit objective is often measured in terms of ROI.The acronym ROI stands for

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The ratio of perceived benefits to price is referred to as

Correct AnswerverifiedShow Answer

The sum of the firm's expenses that change with the quantity of the product that is produced and sold is referred to as

Correct AnswerverifiedShow Answer

Insurance premiums,entrance fees,train fares,and organization dues are all examples of

Correct AnswerverifiedShow Answer

What factors determine price elasticity of demand?

Correct AnswerverifiedPrice elasticity of demand is determined...View AnswerShow Answer

Most public utilities must petition regulatory commissions in order to obtain a rate increase.Which pricing constraint does this statement demonstrate?

Correct AnswerverifiedShow Answer

Demand for a product is likely to be more price elastic if it

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Pure monopoly is the competitive market situation where

Correct AnswerverifiedShow Answer

Which of the following statements regarding pricing constraints is most accurate?

Correct AnswerverifiedShow Answer

Which of the following statements regarding sales goals is most accurate?

Correct AnswerverifiedShow Answer

From a marketing viewpoint,________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Correct AnswerverifiedShow Answer

Price elasticity of demand is determined by a number of factors,such as the availability of substitutes,the necessity of the product or service,and

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain the price equation in the context of a new car purchase.

Correct AnswerverifiedThe price equation is: Final price = Lis...View AnswerShow Answer

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Price elasticity of demand is determined...
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The price equation is: Final price = Lis...
View Answer