Question 1

Three different objectives relate to a firm's profit, each of which have different implications for pricing strategy. One of these is

Accepted Answer

A)   accumulating profits.
B)   reinvesting profits.
C)   redistributing profits.
D)   maximizing gross margin.
E)   achieving a target return.F) A) and B)
G) None of the above

Question 2

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

Accepted Answer

A)   charges.
B)   countertrade.
C)   profit.
D)   price.
E)   currency.F) C) and E)
G) B) and E)

Question 3

A primary reason for Washburn Guitars' success is

Accepted Answer

A)   underselling competitors by mass-producing fine-quality guitars.
B)   developing product lines at different price points for different market segments.
C)   offering significant price breaks to well-known performers in exchange for product endorsements.
D)   selling traditional American "rock 'n roll" guitars in global markets.
E)   setting up free music programs and donating low-price-point guitars to students in schools that have lost their music programs due to budget constraints.F) A) and B)
G) C) and D)

Question 4

Figure 13-4B
-In Figure 13-4B above, the demand curve shifts from D2to D3(B) . This most likely represents

Accepted Answer

A)   an increase in demand resulting from competitor or consumer changes.
B)   an increase in demand that required a decrease in price.
C)   no change in price and no change in demand.
D)   no change in demand or price but a greater profit due to economies of scale.
E)   a decrease in price from $8 to $6 per unit.F) B) and D)
G) B) and E)

Question 5

RadioShack, an electronics retail chain, couldn't compete with the prices offered by other retailers. The company enacted price matching programs and promoted large discounts on its merchandise to raise cash and to try to stave off bankruptcy. The best pricing objective at this point for RadioShack most likely was

Accepted Answer

A)   profit.
B)   market share.
C)   unit volume.
D)   survival.
E)   social responsibility.F) B) and D)
G) A) and B)

Question 6

Break-even analysis is

Accepted Answer

A)   a process that investigates the difference between marginal revenue and marginal cost.
B)   a method of determining just how much a consumer is willing to pay for a product or service.
C)   a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.
D)   the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm.
E)   the graph that shows the maximum number of products consumers will buy at a given price.F) A) and E)
G) B) and C)

Question 7

Which of the following are elements involved in Step 1 of the price-setting process?

Accepted Answer

A)   objectives and constraints
B)   estimation of demand, sales revenue, and price elasticity
C)   cost estimation, marginal analysis, and break-even analysis
D)   demand for the product class and brand, newness of the product, and competition
E)   market segmentation targeting, and positioningF) A) and E)
G) A) and D)

Question 8

All of these are alternate names for the price you pay on goods and services exceptwhich?

Accepted Answer

A)   rent
B)   interest
C)   tuition
D)   dues
E)   profitF) B) and C)
G) All of the above

Question 9

The competitive market situation in which many sellers follow the market price for identical, commodity products is referred to as

Accepted Answer

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

Question 10

Washburn Guitars markets its guitars to four distinct market segments. The firm's one-of-kind custom instruments are targeted at

Accepted Answer

A)   first-time buyers.
B)   professional musicians.
C)   stars and collectors.
D)   large institutional buyers such as high school and collegiate band programs.
E)   intermediate-skill players who may become professional musicians.F) A) and C)
G) None of the above

Question 11

The break-even point (BEP)  = [Fixed cost ÷ (Unit price − ________) ].

Accepted Answer

A)   Total cost
B)   Total expense
C)   Marginal revenue
D)   Unit variable cost
E)   Total number of units produced or quantityF) A) and E)
G) A) and C)

Question 12

Figure 13-7B
-In the break-even chart in Figure 13-7 above, point A identifies the firm's ________ point.

Accepted Answer

A)   loss
B)   price
C)   margin
D)   profit
E)   break-evenF) B) and E)
G) A) and B)

Question 13

Market share is the ratio of the ________ to those of the industry, including the firm itself.

Accepted Answer

A)   target return on sales
B)   marginal profit of the firm
C)   firm's sales revenues or unit sales
D)   marketing expenses of the firm
E)   profits of the firmF) C) and D)
G) A) and E)

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) All of the above
G) A) and D)

Question 15

All of these are legal or ethical considerations when setting a final price exceptwhich?

Accepted Answer

A)   geographical pricing
B)   predatory pricing
C)   price matching
D)   price fixing
E)   deceptive pricingF) None of the above
G) D) and E)

Question 16

There are more than 100 companies that manufacture natural and artificial flavorings used to enhance the taste of food before it is sold to consumers. Some of these manufacturers differentiate themselves from the competition in their advertising by specializing in one or two types of foods for which they provide flavorings. Others use their distribution strategies as a means of differentiating themselves. This industry is most likely an example of

Accepted Answer

A)   pure monopoly.
B)   oligopoly.
C)   monopolistic competition.
D)   bilateral monopoly.
E)   monopolistic oligopoly.F) None of the above
G) B) and C)

Question 17

Which of these is a typical example of a variable cost?

Accepted Answer

A)   shipping costs
B)   rent on a building
C)   executive salaries
D)   insurance premiums
E)   leases on delivery trucksF) None of the above
G) A) and B)

Question 18

Figure 13-7A
-Figure 13-7 above depicts a

Accepted Answer

A)   Gantt chart.
B)   demand curve.
C)   break-even chart.
D)   ROI analysis.
E)   cross-tabulation.F) A) and B)
G) A) and C)

Question 19

What is the difference between fixed costs and variable costs?

Accepted Answer

Fixed cost is the sum of the expenses of...

Question 20

The total money received from the sale of a product is referred to as

Accepted Answer

A)   profit.
B)   total revenue.
C)   average revenue.
D)   marginal revenue.
E)   derived demand.F) B) and C)
G) B) and D)

Exam 13: Building the Price Foundation

Correct Answer
verified

Figure 13-4B -In Figure 13-4B above, the demand curve shifts from D2to D3(B) . This most likely represents

Correct Answer
verified

Washburn Guitars markets its guitars to four distinct market segments. The firm's one-of-kind custom instruments are targeted at

Correct Answer
verified

All of these are alternate names for the price you pay on goods and services exceptwhich?

Correct Answer
verified

Market share is the ratio of the ________ to those of the industry, including the firm itself.

Correct Answer
verified

The break-even point (BEP) = [Fixed cost ÷ (Unit price − ________) ].

Correct Answer
verified

Correct Answer
verified

All of these are legal or ethical considerations when setting a final price exceptwhich?

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

Which of these is a typical example of a variable cost?

Correct Answer
verified

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

Correct Answer
verified

Break-even analysis is

Correct Answer
verified

Figure 13-7A -Figure 13-7 above depicts a

Correct Answer
verified

A primary reason for Washburn Guitars' success is

Correct Answer
verified

What is the difference between fixed costs and variable costs?

Correct Answer
verified
Fixed cost is the sum of the expenses of...
View Answer

The competitive market situation in which many sellers follow the market price for identical, commodity products is referred to as

Correct Answer
verified

Which of the following are elements involved in Step 1 of the price-setting process?

Correct Answer
verified

Three different objectives relate to a firm's profit, each of which have different implications for pricing strategy. One of these is

Correct Answer
verified

Figure 13-7B -In the break-even chart in Figure 13-7 above, point A identifies the firm's ________ point.

Correct Answer
verified

The total money received from the sale of a product is referred to as

Correct Answer
verified

Exam 13: Building the Price Foundation

Correct AnswerverifiedShow Answer

Figure 13-4B -In Figure 13-4B above, the demand curve shifts from D2to D3(B) . This most likely represents

Correct AnswerverifiedShow Answer

Washburn Guitars markets its guitars to four distinct market segments. The firm's one-of-kind custom instruments are targeted at

Correct AnswerverifiedShow Answer

All of these are alternate names for the price you pay on goods and services exceptwhich?

Correct AnswerverifiedShow Answer

Market share is the ratio of the ________ to those of the industry, including the firm itself.

Correct AnswerverifiedShow Answer

The break-even point (BEP) = [Fixed cost ÷ (Unit price − ________) ].

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All of these are legal or ethical considerations when setting a final price exceptwhich?

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

Which of these is a typical example of a variable cost?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Break-even analysis is

Correct AnswerverifiedShow Answer

Figure 13-7A -Figure 13-7 above depicts a

Correct AnswerverifiedShow Answer

A primary reason for Washburn Guitars' success is

Correct AnswerverifiedShow Answer

What is the difference between fixed costs and variable costs?

Correct AnswerverifiedFixed cost is the sum of the expenses of...View AnswerShow Answer

The competitive market situation in which many sellers follow the market price for identical, commodity products is referred to as

Correct AnswerverifiedShow Answer

Which of the following are elements involved in Step 1 of the price-setting process?

Correct AnswerverifiedShow Answer

Three different objectives relate to a firm's profit, each of which have different implications for pricing strategy. One of these is

Correct AnswerverifiedShow Answer

Figure 13-7B -In the break-even chart in Figure 13-7 above, point A identifies the firm's ________ point.

Correct AnswerverifiedShow Answer

The total money received from the sale of a product is referred to as

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Fixed cost is the sum of the expenses of...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified