Question 1

A firm may forgo 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 B)
G) C) and E)

Question 2

Many convenience stores now have mail slots where customers can pay their utility bills. The utility companies handle all the processing while the customers get the benefit of not having to use postage. The convenience store owner gets the advantage of the extra foot traffic. The mail slots are an example of

Accepted Answer

A)  societal pricing.
B)  revenue sharing.
C)  value-pricing.
D)  barter.
E)  cost-pricing.F) C) and D)
G) None of the above

Question 3

Which of the following represent elements of Step 2 of the price-setting process?

Accepted Answer

A)  profit, market share, and survival
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 D)
G) A) and E)

Question 4

What factors determine price elasticity of demand?

Accepted Answer

Price elasticity of demand is determined...

Question 5

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

Accepted Answer

A)  the nature of product differentiation and extent of advertising.
B)  the nature of product differentiation and extent of on-hand inventory.
C)  the degree of involvement with each of the organization's stakeholders.
D)  the degree of involvement with both retailers and wholesalers.
E)  the relationship between product lines and product classes.F) All of the above
G) A) and B)

Question 6

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

Accepted Answer

A)  capitalism.
B)  socialism.
C)  monopolistic competition.
D)  consumer-dominated.
E)  government-dominated.F) C) and D)
G) A) and B)

Question 7

George and Alice Renfro decided to start a family business in 1990 to produce chowchow, a Southern regional food. To determine how they would price the chowchow, the Renfros had to examine (1)  the demand for the product and the cost to distribute the product to area grocery stores. For the Renfros, Step 1 of their price-setting process consists of

Accepted Answer

A)  identifying pricing constraints.
B)  estimating break-even points and revenue points.
C)  setting the list price.
D)  selecting an approximate price level.
E)  determining cost, volume, and profit relationships.F) C) and D)
G) B) and C)

Question 8

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) A) and C)
G) A) and B)

Question 9

Economists have identified four types of competitive markets, which are

Accepted Answer

A)  capitalistic, monopolistic, socialist, and communist.
B)  pure monopoly, monopolistic competition, oligopoly, and pure competition.
C)  free market, restrained market, government-regulated, and command economy.
D)  market economy, command economy, traditional economy, and controlled economy.
E)  open market, consumer-dominated market, service market, and product market.F) D) and E)
G) B) and D)

Question 10

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) A) and B)
G) A) and E)

Question 11

Acme Shoe Co. sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per kit. Suppose a consultant tells Acme that it can sell 750,000 heel repair kits. What price must Acme charge to achieve a profit of $2.5 million?

Accepted Answer

A)  $5.00
B)  $8.33
C)  $11.33
D)  $16.33
E)  $20.00F) A) and E)
G) A) and D)

Question 12

In a snack vending machine, consumers can select one of many choices. These snacks are

Accepted Answer

A)  an ideal example of unitary demand.
B)  likely to have a price elasticity equal to 1.
C)  more likely to be price elastic.
D)  likely to have a price elasticity less than 1.
E)  more likely to be price inelastic.F) D) and E)
G) A) and D)

Question 13

A target return profit objective implies that a company chooses to

Accepted Answer

A)  set targets whose performance can be measured quickly.
B)  give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
C)  set a profit goal that is often determined by its board of directors.
D)  reduce investment in any further market or product research.
E)  set prices based on return on sales.F) A) and C)
G) A) and B)

Question 14

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

Accepted Answer

A)  capitalism.
B)  socialism.
C)  consumer-dominated.
D)  oligopoly.
E)  government-dominated.F) A) and E)
G) A) and D)

Question 15

Which term describes factors that limit the range of prices a firm may set?

Accepted Answer

A)  price fixings
B)  pricing constraints
C)  price elasticities
D)  pricing demands
E)  pricing marginsF) A) and C)
G) None of the above

Question 16

For the sake of simplicity and by convention, price elasticity figures are shown as

Accepted Answer

A)  positive numbers (0.64, 1.25, etc.) .
B)  negative numbers (-0.64, -1.25, etc.) .
C)  Greek letters (∑, ∏, etc.) .
D)  Roman numerals (I, V, X, etc.) .
E)  English consonants (P, Q, TR, etc.) .F) All of the above
G) A) and B)

Question 17

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

Accepted Answer

A)  a pure monopoly.
B)  an oligopoly.
C)  pure competition.
D)  monopolistic competition.
E)  monopolistic oligopoly.F) All of the above
G) A) and C)

Question 18

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

Accepted Answer

The six broad objectives that ...

Question 19

Each month, the owner of a car wash pays $2,500 in rent, $500 in utilities, $750 interest on the business loan, an insurance premium of $200, and $250 on advertising on local bus routes. A full-service car wash is priced at $10.50. Unit variable costs for the car wash are $7.50. At what level of revenue will the car wash break even?

Accepted Answer

A)  $4,200
B)  $10,500
C)  $14,700
D)  $30,000
E)  $39,900F) A) and B)
G) A) and E)

Question 20

If competitive market circumstances are such that there are few sellers who are sensitive to each other's prices, and the purpose of advertising is to inform but avoid price competition, then __________ must exist in the industry.

Accepted Answer

A)  a pure monopoly
B)  monopolistic competition
C)  pure competition
D)  an oligopoly
E)  oligopolistic competitionF) None of the above
G) C) and D)

Exam 13: Building the Price Foundation

What factors determine price elasticity of demand?

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

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Acme Shoe Co. sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per kit. Suppose a consultant tells Acme that it can sell 750,000 heel repair kits. What price must Acme charge to achieve a profit of $2.5 million?

Correct Answer
verified

Which term describes factors that limit the range of prices a firm may set?

Correct Answer
verified

Economists have identified four types of competitive markets, which are

Correct Answer
verified

In a snack vending machine, consumers can select one of many choices. These snacks are

Correct Answer
verified

For the sake of simplicity and by convention, price elasticity figures are shown as

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

If competitive market circumstances are such that there are few sellers who are sensitive to each other's prices, and the purpose of advertising is to inform but avoid price competition, then __________ must exist in the industry.

Correct Answer
verified

A target return profit objective implies that a company chooses to

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 represent elements of Step 2 of the price-setting process?

Correct Answer
verified

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

Correct Answer
verified
The six broad objectives that ...
View Answer

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

Correct Answer
verified

Exam 13: Building the Price Foundation

What factors determine price elasticity of demand?

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Acme Shoe Co. sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per kit. Suppose a consultant tells Acme that it can sell 750,000 heel repair kits. What price must Acme charge to achieve a profit of $2.5 million?

Correct AnswerverifiedShow Answer

Which term describes factors that limit the range of prices a firm may set?

Correct AnswerverifiedShow Answer

Economists have identified four types of competitive markets, which are

Correct AnswerverifiedShow Answer

In a snack vending machine, consumers can select one of many choices. These snacks are

Correct AnswerverifiedShow Answer

For the sake of simplicity and by convention, price elasticity figures are shown as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If competitive market circumstances are such that there are few sellers who are sensitive to each other's prices, and the purpose of advertising is to inform but avoid price competition, then __________ must exist in the industry.

Correct AnswerverifiedShow Answer

A target return profit objective implies that a company chooses to

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 represent elements of Step 2 of the price-setting process?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThe six broad objectives that ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The six broad objectives that ...
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Correct Answer
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