Question 1

Figure 13-4B
-A shift of the demand curve from D2to D3in Figure 13-4B above indicates

Accepted Answer

A)   fewer units are demanded at the given price.
B)   more units are demanded at the given price.
C)   the price has decreased.
D)   the price has increased.
E)   there is not enough information given to indicate what happened.F) A) and D)
G) B) and C)

Question 2

An oligopoly is a competitive market situation in which

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 few sellers compete solely on nonprice factors.F) B) and C)
G) B) and D)

Question 3

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) C) and D)
G) None of the above

Question 4

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

Question 5

Distinguish between elastic demand and inelastic demand.

Accepted Answer

Elastic demand exists when a 1 percent d...

Question 6

The sum of the expenses of a firm that is stable and does not 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)   variable cost.
D)   sunk cost.
E)   overhead cost.F) B) and D)
G) C) and D)

Question 7

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

Accepted Answer

A)   Total cost
B)   Total expense
C)   Fixed cost
D)   Unit variable cost
E)   Unit priceF) None of the above
G) A) and B)

Question 8

Companies are reluctant to lower their selling prices because this lowers the ________ and even more sharply increases the ________.

Accepted Answer

A)   variable cost; profit
B)   contribution margin; break-even point
C)   revenue; fixed costs
D)   profit; fixed costs
E)   fixed cost; variable costsF) A) and C)
G) All of the above

Question 9

If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by

Accepted Answer

A)   lowering its price.
B)   increasing fixed costs only.
C)   increasing variable costs only.
D)   increasing both fixed and variable costs.
E)   raising its price.F) A) and B)
G) C) and E)

Question 10

Some firms pursue a ________ pricing objective, perhaps using discounting to generate cash to stave off bankruptcy.

Accepted Answer

A)   market share
B)   survival
C)   sales revenue
D)   single product line
E)   profitF) All of the above
G) A) and B)

Question 11

Which lists the types of competitive markets from most competitive to least competitive?

Accepted Answer

A)   monopolistic competition, pure monopoly, pure competition, and oligopoly
B)   pure competition, monopolistic competition, oligopoly, and pure monopoly
C)   pure competition, monopolistic competition, pure monopoly, and oligopoly
D)   oligopoly, pure competition, monopolistic competition, and pure monopoly
E)   pure monopoly, pure competition, oligopoly, and monopolistic competitionF) A) and B)
G) B) and E)

Question 12

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

Question 13

If the CEO of the Clorox Co. were to say, "We want to control 40 percent of the household bleach category within the next five years," he would have set a ________ pricing objective.

Accepted Answer

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

Question 14

Describe the types of competitive markets and give an example of each one.

Accepted Answer

There are four types of competitive mark...

Question 15

A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 15 dishwashers traded in. What is the final price the company will pay for each dishwasher?

Accepted Answer

A)   $390
B)   $400
C)   $410
D)   $430
E)   $730F) B) and E)
G) C) and E)

Question 16

While pricing objectives frequently reflect corporate goals, pricing constraints often relate to

Accepted Answer

A)   stockholder demands.
B)   political ideology.
C)   conditions existing in the marketplace.
D)   an organization's code of ethics.
E)   the financial realities within the organization itself.F) None of the above
G) A) and C)

Question 17

Figure 13-7B
-In the break-even chart in Figure 13-7 above, the line CG represents the firm's

Accepted Answer

A)   fixed costs.
B)   break-even point.
C)   variable costs.
D)   profit.
E)   total revenue.F) C) and E)
G) A) and C)

Question 18

According to the price equation, final price equals list price minus ________ plus extra fees.

Accepted Answer

A)   profits
B)   commissions
C)   trade-ins
D)   taxes
E)   allowancesF) B) and E)
G) A) and E)

Question 19

If you know the contents and price of a McDonald's Extra Value Meal, it may serve as ________ to you when you visit other fast-food restaurants and consider the purchase of a meal option there.

Accepted Answer

A)   a marginal analysis
B)   a profit equation
C)   a reference value
D)   a break-even analysis
E)   price elasticity of demandF) B) and C)
G) D) and E)

Question 20

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

Accepted Answer

A)   supply factors.
B)   demand factors.
C)   affordability factors.
D)   elasticity factors.
E)   macro environmental factors.F) A) and E)
G) A) and D)

Exam 13: Building the Price Foundation

Distinguish between elastic demand and inelastic demand.

Correct Answer
verified
Elastic demand exists when a 1 percent d...
View Answer

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

Correct Answer
verified

An oligopoly is a competitive market situation in which

Correct Answer
verified

Companies are reluctant to lower their selling prices because this lowers the and even more sharply increases the .

Correct Answer
verified

Correct Answer
verified

Some firms pursue a ________ pricing objective, perhaps using discounting to generate cash to stave off bankruptcy.

Correct Answer
verified

Which lists the types of competitive markets from most competitive to least competitive?

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

Describe the types of competitive markets and give an example of each one.

Correct Answer
verified
There are four types of competitive mark...
View Answer

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

Correct Answer
verified

If you know the contents and price of a McDonald's Extra Value Meal, it may serve as ________ to you when you visit other fast-food restaurants and consider the purchase of a meal option there.

Correct Answer
verified

While pricing objectives frequently reflect corporate goals, pricing constraints often relate to

Correct Answer
verified

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

Correct Answer
verified

The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

Correct Answer
verified

Figure 13-7B -In the break-even chart in Figure 13-7 above, the line CG represents the firm's

Correct Answer
verified

According to the price equation, final price equals list price minus ________ plus extra fees.

Correct Answer
verified

Figure 13-4B -A shift of the demand curve from D2to D3in Figure 13-4B above indicates

Correct Answer
verified

If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by

Correct Answer
verified

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

Correct Answer
verified

If the CEO of the Clorox Co. were to say, "We want to control 40 percent of the household bleach category within the next five years," he would have set a ________ pricing objective.

Correct Answer
verified

Exam 13: Building the Price Foundation

Distinguish between elastic demand and inelastic demand.

Correct AnswerverifiedElastic demand exists when a 1 percent d...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

An oligopoly is a competitive market situation in which

Correct AnswerverifiedShow Answer

Companies are reluctant to lower their selling prices because this lowers the ________ and even more sharply increases the ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Some firms pursue a ________ pricing objective, perhaps using discounting to generate cash to stave off bankruptcy.

Correct AnswerverifiedShow Answer

Which lists the types of competitive markets from most competitive to least competitive?

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

Describe the types of competitive markets and give an example of each one.

Correct AnswerverifiedThere are four types of competitive mark...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

If you know the contents and price of a McDonald's Extra Value Meal, it may serve as ________ to you when you visit other fast-food restaurants and consider the purchase of a meal option there.

Correct AnswerverifiedShow Answer

While pricing objectives frequently reflect corporate goals, pricing constraints often relate to

Correct AnswerverifiedShow Answer

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

Correct AnswerverifiedShow Answer

The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

Correct AnswerverifiedShow Answer

Figure 13-7B -In the break-even chart in Figure 13-7 above, the line CG represents the firm's

Correct AnswerverifiedShow Answer

According to the price equation, final price equals list price minus ________ plus extra fees.

Correct AnswerverifiedShow Answer

Figure 13-4B -A shift of the demand curve from D2to D3in Figure 13-4B above indicates

Correct AnswerverifiedShow Answer

If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the CEO of the Clorox Co. were to say, "We want to control 40 percent of the household bleach category within the next five years," he would have set a ________ pricing objective.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Elastic demand exists when a 1 percent d...
View Answer

Correct Answer
verified

Correct Answer
verified

Companies are reluctant to lower their selling prices because this lowers the and even more sharply increases the .

Correct Answer
verified

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
verified
There are four types of competitive mark...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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