Question 1

An oligopoly:

Accepted Answer

A)  is characterized by distinctive product differentiation. 
B)  is a market dominated by a few firms, all marketing similar products. 
C)  typically uses kinked distribution channels. 
D)  is a market where price wars are commonplace. 
E)  is any market containing several firms, all trying to appeal to the same target market. 
A)  is characterized by distinctive product differentiation. 
B)  is a market dominated by a few firms, all marketing similar products. 
C)  typically uses kinked distribution channels. 
D)  is a market where price wars are commonplace. 
E)  is any market containing several firms, all trying to appeal to the same target market.

Question 2

Under market conditions of perfect competition,:

Accepted Answer

A)  buyers are ignorant. 
B)  product differentiation is used excessively. 
C)  the seller controls the selling price. 
D)  there are no directly competing products. 
E)  none of the above is True. 
A)  buyers are ignorant. 
B)  product differentiation is used excessively. 
C)  the seller controls the selling price. 
D)  there are no directly competing products. 
E)  none of the above is True.

Question 3

_____ is the unit price at a given level of unit sales.

Accepted Answer

A)  Break-even price 
B)  Markup 
C)  Profit 
D)  Average revenue 
E)  Marginal revenue 
A)  Break-even price 
B)  Markup 
C)  Profit 
D)  Average revenue 
E)  Marginal revenue

Question 4

Rolex is famous as a brand of very expensive watches. If Rolex were to market a watch that sold for $10.95, sales of the watch would probably be slow because of the perceived relationship between price and:

Accepted Answer

A)  source credibility. 
B)  supplier. 
C)  promotion. 
D)  product quality. 
E)  resource allocation. 
A)  source credibility. 
B)  supplier. 
C)  promotion. 
D)  product quality. 
E)  resource allocation.

Question 5

Two companies, Hallmark and American Greeting, dominate the greeting card industry in the United States. It is likely that these one of these companies will experience a(n) _____

Accepted Answer

A)  unlimited supply of resources. 
B)  inverse supply curve. 
C)  limited supply of resources. 
D)  kinked demand curve. 
E)  marginal demand. 
A)  unlimited supply of resources. 
B)  inverse supply curve. 
C)  limited supply of resources. 
D)  kinked demand curve. 
E)  marginal demand.

Question 6

When Patricia Flagg's friend asked her create something to sell at a holiday boutique food booth, she had no idea she was launching a new business. For her initial product she packaged eleven different kinds of beans, some herbs, and some spices with directions to add a ham hock, water, and vegetables for Minnesota Heartland soup. She has since added Illinois Prairie Corn chowder, which has dry corn, rice, and seasonings, as well as a Louisiana Red Bean gumbo mix and a New England fish soup mix. Each mix makes enough to feed 10 people. Her annual fixed costs are $9,000, and the variable costs for one bag of soup mix are $1.50. An individual bag of soup mix sells for $6.50. In her first year of operation, she sold 3,800 mixes.
-Assume Flagg has earned enough so the next bag of mix she sells will earn her a profit. What will be her marginal cost?

Accepted Answer

A)  $1.50 
B)  $5.00 
C)  $6.50 
D)  $7.50 
E)  $9.00 
A)  $1.50 
B)  $5.00 
C)  $6.50 
D)  $7.50 
E)  $9.00

Question 7

When Patricia Flagg's friend asked her create something to sell at a holiday boutique food booth, she had no idea she was launching a new business. For her initial product she packaged eleven different kinds of beans, some herbs, and some spices with directions to add a ham hock, water, and vegetables for Minnesota Heartland soup. She has since added Illinois Prairie Corn chowder, which has dry corn, rice, and seasonings, as well as a Louisiana Red Bean gumbo mix and a New England fish soup mix. Each mix makes enough to feed 10 people. Her annual fixed costs are $9,000, and the variable costs for one bag of soup mix are $1.50. An individual bag of soup mix sells for $6.50. In her first year of operation, she sold 3,800 mixes.
-What is her break-even point in packages of dry soup mix?

Accepted Answer

A)  1,385 packages 
B)  1,800 packages 
C)  3,800 packages 
D)  5,000 packages 
E)  6,000 packages 
A)  1,385 packages 
B)  1,800 packages 
C)  3,800 packages 
D)  5,000 packages 
E)  6,000 packages

Question 8

_____ pricing means setting the price of one unit of a product equal to the total cost of the unit plus the  desired profit on the unit.

Accepted Answer

The answer of _____ pricing means setting the price of...

Question 9

When production stops, all _____ become zero.

Accepted Answer

A)  variable production costs 
B)  overhead costs 
C)  costs 
D)  fixed production costs 
E)  fixed costs 
A)  variable production costs 
B)  overhead costs 
C)  costs 
D)  fixed production costs 
E)  fixed costs

Question 10

The cost of a case of computer paper sold to a retailer is $20. It costs $2 to ship the paper. If more than two boxes are purchased, the price per case is reduced by 5 percent. If the reseller engages in co-op advertising with the producer of the paper, there is an additional one percent discount. What is the base price of a case of computer paper?

Accepted Answer

A)  $18.80 
B)  $19.00 
C)  $20.00 
D)  $20.68 
E)  $22.00 
A)  $18.80 
B)  $19.00 
C)  $20.00 
D)  $20.68 
E)  $22.00

Question 11

The average variable costs in most manufacturing companies usually:

Accepted Answer

A)  are high for the first few units produced. 
B)  are constant. 
C)  are lower than marginal costs. 
D)  increase as total output increases up to an optimum point. 
E)  are equal to fixed costs minus marginal costs. 
A)  are high for the first few units produced. 
B)  are constant. 
C)  are lower than marginal costs. 
D)  increase as total output increases up to an optimum point. 
E)  are equal to fixed costs minus marginal costs.

Question 12

Which of the following is an example of a fixed cost for a retail flower and gift shop?

Accepted Answer

A)  gas for the delivery truck 
B)  store mortgage payment 
C)  fresh flowers 
D)  part-time sales people 
E)  plastic flower pots, foil, and ribbon 
A)  gas for the delivery truck 
B)  store mortgage payment 
C)  fresh flowers 
D)  part-time sales people 
E)  plastic flower pots, foil, and ribbon

Question 13

Germany's Heildeberg Cement, France's Lafarge, France's Schwenck Holcim, and Germany's Dyckerhoff dominate the cement industry in the European Union. If France's LaForge were to raise its price for cement significantly above those of its competitors, then its competitors will experience a(n): A unlimited supply of resources.

Accepted Answer

A)  inverse supply curve. 
B)  limited supply of resources. 
C)  kinked demand curve. 
D)  marginal demand. 
A)  inverse supply curve. 
B)  limited supply of resources. 
C)  kinked demand curve. 
D)  marginal demand.

Question 14

Break-even analysis considers market demand.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an example of a sales-oriented pricing objective?

Accepted Answer

A)  to achieve a target return 
B)  to meet competition 
C)  to maximize profit 
D)  to increase sales volume 
E)  to optimize price 
A)  to achieve a target return 
B)  to meet competition 
C)  to maximize profit 
D)  to increase sales volume 
E)  to optimize price

Question 16

A pricing goal of increasing sales volume is typically adopted to:

Accepted Answer

A)  increase demand for a product category. 
B)  maintain market share. 
C)  maintain a slow, steady level of growth. 
D)  discourage potential competitors from entering a market. 
E)  achieve a target return on investment. 
A)  increase demand for a product category. 
B)  maintain market share. 
C)  maintain a slow, steady level of growth. 
D)  discourage potential competitors from entering a market. 
E)  achieve a target return on investment.

Question 17

The average fixed cost curve:

Accepted Answer

A)  declines as output increases. 
B)  is usually U-shaped. 
C)  increases as output increases. 
D)  decreases as output decreases. 
E)  is unaffected by the supply and demand curve. 
A)  declines as output increases. 
B)  is usually U-shaped. 
C)  increases as output increases. 
D)  decreases as output decreases. 
E)  is unaffected by the supply and demand curve.

Question 18

In a typical manufacturing operation, the marginal cost curve:

Accepted Answer

A)  is vertical. 
B)  slopes upward. 
C)  is horizontal. 
D)  slopes downward. 
E)  slopes downward and then turns up. 
A)  is vertical. 
B)  slopes upward. 
C)  is horizontal. 
D)  slopes downward. 
E)  slopes downward and then turns up.

Question 19

When the market is dominated by a few firms, each selling similar products, it is called a(n):

Accepted Answer

A)  marginal market. 
B)  break-even market. 
C)  oligopoly. 
D)  monopoly. 
E)  purely competitive market. 
A)  marginal market. 
B)  break-even market. 
C)  oligopoly. 
D)  monopoly. 
E)  purely competitive market.

Question 20

Which of the following sayings best reflects the philosophy of small manufacturers in industries that typically use a price stabilization goal?

Accepted Answer

A)  "Walk softly and carry a big stick." 
B)  "Charge all that the traffic will bear." 
C)  "Follow the leader." 
D)  "An eye for an eye." 
E)  "Keep your chin down." 
A)  "Walk softly and carry a big stick." 
B)  "Charge all that the traffic will bear." 
C)  "Follow the leader." 
D)  "An eye for an eye." 
E)  "Keep your chin down."

An oligopoly:

Under market conditions of perfect competition,:

_____ is the unit price at a given level of unit sales.

Rolex is famous as a brand of very expensive watches. If Rolex were to market a watch that sold for $10.95, sales of the watch would probably be slow because of the perceived relationship between price and:

Two companies, Hallmark and American Greeting, dominate the greeting card industry in the United States. It is likely that these one of these companies will experience a(n) _____

_____ pricing means setting the price of one unit of a product equal to the total cost of the unit plus the desired profit on the unit.

When production stops, all _____ become zero.

The average variable costs in most manufacturing companies usually:

Which of the following is an example of a fixed cost for a retail flower and gift shop?

Break-even analysis considers market demand.

Which of the following is an example of a sales-oriented pricing objective?

A pricing goal of increasing sales volume is typically adopted to:

The average fixed cost curve:

In a typical manufacturing operation, the marginal cost curve:

When the market is dominated by a few firms, each selling similar products, it is called a(n):

Which of the following sayings best reflects the philosophy of small manufacturers in industries that typically use a price stabilization goal?

The Field of Marketing

The Dynamic Marketing Environment

Global Markets and Marketing

Consumer Markets and Buying Behavior

Business Markets and Buying Behavior

Marketing Research and Market Information

Product Planning and Development

Product-Mix Strategies

Brands, Packaging, and Other Product Features

Services Marketing

Pricing Strategies

Channels of Distribution

Retailing

Wholesaling and Physical Distribution

Integrated Marketing Communications

Personal Selling and Sales Management

Advertising, Sales Promotion, and Public Relations

Strategic Marketing Planning

Marketing Implementation and Evaluation

Marketing and the Information Economy

Market Segmentation Targeting and Positioning

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Exam 12: Price Determination

An oligopoly:

Under market conditions of perfect competition,:

_____ is the unit price at a given level of unit sales.

Rolex is famous as a brand of very expensive watches. If Rolex were to market a watch that sold for $10.95, sales of the watch would probably be slow because of the perceived relationship between price and:

Two companies, Hallmark and American Greeting, dominate the greeting card industry in the United States. It is likely that these one of these companies will experience a(n) _____

_____ pricing means setting the price of one unit of a product equal to the total cost of the unit plus the desired profit on the unit.

When production stops, all _____ become zero.

The average variable costs in most manufacturing companies usually:

Which of the following is an example of a fixed cost for a retail flower and gift shop?

Break-even analysis considers market demand.

Which of the following is an example of a sales-oriented pricing objective?

A pricing goal of increasing sales volume is typically adopted to:

The average fixed cost curve:

In a typical manufacturing operation, the marginal cost curve:

When the market is dominated by a few firms, each selling similar products, it is called a(n):

Which of the following sayings best reflects the philosophy of small manufacturers in industries that typically use a price stabilization goal?

The Field of Marketing

The Dynamic Marketing Environment

Global Markets and Marketing

Consumer Markets and Buying Behavior

Business Markets and Buying Behavior

Marketing Research and Market Information

Product Planning and Development

Product-Mix Strategies

Brands, Packaging, and Other Product Features

Services Marketing

Pricing Strategies

Channels of Distribution

Retailing

Wholesaling and Physical Distribution

Integrated Marketing Communications

Personal Selling and Sales Management

Advertising, Sales Promotion, and Public Relations

Strategic Marketing Planning

Marketing Implementation and Evaluation

Marketing and the Information Economy

Market Segmentation Targeting and Positioning

Filters