Question 1

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) C) and E)
G) B) and D)

Question 2

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

Accepted Answer

A)  return on assets
B)  risk opportunity assessment
C)  return of allowances
D)  return on average equity
E)  risk opportunity analysisF) B) and E)
G) B) and C)

Question 3

Average revenue is

Accepted Answer

A)  the typical or average sales generated for all items within an industry.
B)  the average amount of revenue necessary for a business to remain profitable.
C)  total revenue divided by the quantity sold.
D)  the difference between the highest and lowest price charged for a given item within a specific firm.
E)  the difference between the highest and lowest price charged for a given item within a specific industry.F) B) and E)
G) None of the above

Question 4

Figure 13-5A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D1,the quantity demanded

Accepted Answer

A)  increases from 2 to 3 million units per year.
B)  decreases from 3 to 2 million units per year.
C)  stays the same.
D)  increases from 6 to 8 million units per year.
E)  decreases from 8 to 6 million units per year.F) B) and E)
G) A) and C)

Question 5

To increase value the most,marketers should

Accepted Answer

A)  decrease benefits.
B)  decrease benefits and increase price.
C)  decrease price and increase benefits.
D)  decrease price and decrease benefits.
E)  do nothing and let the perceived value of the item increase as it matures in its life cycle.F) A) and B)
G) A) and C)

Question 6

Price elasticity of demand is determined by a number of factors such as the availability of substitutes,the cash outlay of the purchase relative to a person's disposable income,and

Accepted Answer

A)  the stage of the product or service in its product life cycle.
B)  the degree of carrying costs for the manufacturer or distributor.
C)  the financial resources of the organization itself.
D)  the ability of the organization to meet sudden increases in demand.
E)  the necessity of the product or service.F) D) and E)
G) A) and B)

Question 7

George and Alice Renfro decided to start a family business in 1990.Its product-chowchow,a southern regional food.To determine how they would price the chowchow,the Renfros had to: (1) examine the demand for the product and how much it would 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) A) and B)
G) C) and E)

Question 8

Which of the following statements about price elasticity of demand most accurate?

Accepted Answer

A)  The more substitutes a product has,the more likely it is to be price elastic.
B)  All products show some price inelasticity.
C)  Nondiscretionary, (necessary) purchases are price elastic.
D)  With inelastic demand,reducing price has a very large impact on revenues.
E)  With inelastic demand,manufacturers change prices frequently to capitalize on consumer behavior.F) None of the above
G) B) and D)

Question 9

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate costs and perform a marginal analysis to assess profitability?

Accepted Answer

A)  "A"
B)  "B"
C)  "C"
D)  "D"
E)  "E"F) A) and E)
G) A) and C)

Question 10

Which of the following statements about the product life cycle as a pricing constraint is MOST ACCURATE?

Accepted Answer

A)  The newer a product is,the higher the price that can usually be charged.
B)  The later in the product life cycle a product is,the higher the price that can usually be charged.
C)  Once a product is considered nostalgic,the price will continue to rise indefinitely.
D)  Fads will generally have only two price points-high and low-but the values of those price points usually be within 10 percent of each other.
E)  Prices should not be changed until a product reaches its maturity stage.F) None of the above
G) C) and E)

Question 11

Pricing constraints are

Accepted Answer

A)  the controllable elements in a firm's marketing mix that allow it to charge the highest price possible.
B)  formulas used in establishing break-even points,price elasticity of demand,and marginal analysis of revenues and costs.
C)  factors that limit the range of prices a firm may set.
D)  factors that expand the range of prices a firm may set.
E)  virtual boundaries used when setting the initial price on a new product.F) C) and E)
G) B) and C)

Question 12

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Accepted Answer

A)  consumer income.
B)  consumer psychographics.
C)  size of the target market.
D)  current political agendas.
E)  green substitutes.F) C) and E)
G) D) and E)

Question 13

Five cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,unit variable cost,and __________.

Accepted Answer

A)  dividend cost
B)  liquidity cost
C)  discretionary cost
D)  marginal cost
E)  elastic costF) C) and D)
G) A) and D)

Question 14

Which of the following is a typical example of a fixed cost?

Accepted Answer

A)  taxes
B)  raw materials
C)  sales commissions
D)  building rental expense
E)  hourly wagesF) All of the above
G) D) and E)

Question 15

Describe the pricing constraints a firm is likely to face.

Accepted Answer

Pricing constraints are factors that lim...

Question 16

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

Accepted Answer

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

Question 17

Figure 13-10 above depicts a __________.

Accepted Answer

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

Exam 13: Building the Price Foundation

Which of the following is a typical example of a fixed cost?

Correct Answer
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Average revenue is

Correct Answer
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Price elasticity of demand is determined by a number of factors such as the availability of substitutes,the cash outlay of the purchase relative to a person's disposable income,and

Correct Answer
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Pricing constraints are

Correct Answer
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Figure 13-10 above depicts a __________.

Correct Answer
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Figure 13-5A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁,the quantity demanded

Correct Answer
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Five cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,unit variable cost,and __________.

Correct Answer
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Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate costs and perform a marginal analysis to assess profitability?

Correct Answer
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Describe the pricing constraints a firm is likely to face.

Correct Answer
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Pricing constraints are factors that lim...
View Answer

Correct Answer
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A firm's profit objective is often measured in terms of ROA.The acronym ROA stands for __________.

Correct Answer
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Which of the following statements about the product life cycle as a pricing constraint is MOST ACCURATE?

Correct Answer
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The competitive market situation in which many sellers follow the market price for identical,commodity products is referred to as a(n)

Correct Answer
verified

Economists have identified four types of competitive markets,which are

Correct Answer
verified

Which of the following statements about price elasticity of demand most accurate?

Correct Answer
verified

To increase value the most,marketers should

Correct Answer
verified

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Correct Answer
verified

Exam 13: Building the Price Foundation

Which of the following is a typical example of a fixed cost?

Correct AnswerverifiedShow Answer

Average revenue is

Correct AnswerverifiedShow Answer

Price elasticity of demand is determined by a number of factors such as the availability of substitutes,the cash outlay of the purchase relative to a person's disposable income,and

Correct AnswerverifiedShow Answer

Pricing constraints are

Correct AnswerverifiedShow Answer

Figure 13-10 above depicts a __________.

Correct AnswerverifiedShow Answer

Figure 13-5A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D1,the quantity demanded

Correct AnswerverifiedShow Answer

Five cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,unit variable cost,and __________.

Correct AnswerverifiedShow Answer

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate costs and perform a marginal analysis to assess profitability?

Correct AnswerverifiedShow Answer

Describe the pricing constraints a firm is likely to face.

Correct AnswerverifiedPricing constraints are factors that lim...View AnswerShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements about the product life cycle as a pricing constraint is MOST ACCURATE?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Economists have identified four types of competitive markets,which are

Correct AnswerverifiedShow Answer

Which of the following statements about price elasticity of demand most accurate?

Correct AnswerverifiedShow Answer

To increase value the most,marketers should

Correct AnswerverifiedShow Answer

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Correct AnswerverifiedShow Answer

Correct Answer
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Figure 13-5A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁,the quantity demanded

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Pricing constraints are factors that lim...
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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