Question 1

The price equation formula is price equals list price minus incentives and allowances plus:

Accepted Answer

A) salaries. 
B) commissions. 
C) trade-ins. 
D) extra fees. 
A) salaries. 
B) commissions. 
C) trade-ins. 
D) extra fees.

Question 2

Ace Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $6 million and unit variable costs of $5 per pair.If the company charges $15 per pair,how many pairs must it sell to break even?

Accepted Answer

A) 300,000 kits 
B) 400,000 kits 
C) 600,000 kits 
D) 1,200,000 kits 
A) 300,000 kits 
B) 400,000 kits 
C) 600,000 kits 
D) 1,200,000 kits

Question 3

Which of the following statements about profit objectives is true?

Accepted Answer

A) Canadian firms have long been praised for their insistence on managing for long-run profits. 
B) Profit objectives are frequently measured in terms of return on investment or return on assets. 
C) Firms that are interested in strategic planning set their objectives to maximize current profit. 
D) A target return pricing objective would only be used by a company that needs to attract more customers to survive. 
A) Canadian firms have long been praised for their insistence on managing for long-run profits. 
B) Profit objectives are frequently measured in terms of return on investment or return on assets. 
C) Firms that are interested in strategic planning set their objectives to maximize current profit. 
D) A target return pricing objective would only be used by a company that needs to attract more customers to survive.

Question 4

GE has fixed costs of $13B and variable costs for the year of $8B.Their total costs are:

Accepted Answer

A) $21B 
B) $13B 
C) $5B 
D) there is not enough information to calculate 
A) $21B 
B) $13B 
C) $5B 
D) there is not enough information to calculate

Question 5

Buyers for grain set prices ahead of time by the marketplace.Sellers in this market are simply informed of the price and the amount that is needed.This market is likely one of a(n):

Accepted Answer

A) pure monopoly. 
B) oligopoly. 
C) monopolistic competition. 
D) pure competition. 
A) pure monopoly. 
B) oligopoly. 
C) monopolistic competition. 
D) pure competition.

Question 6

What are the conditions favouring the use of penetration pricing?

Accepted Answer

The answer of What are the conditions favouring the use...

Question 7

Figure: 13-5b  
-In Figure 13-5b,as the two diagonal lines on a demand curve graph show a shift from left to right,it most likely represents

Accepted Answer

A) an increase in demand that did not require an increase in price. 
B) an increase in demand that required an increase 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. 
A) an increase in demand that did not require an increase in price. 
B) an increase in demand that required an increase 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.

Question 8

When Pepsi sells 1,000 cases of Pepsi,their cost per case is $0.30.However,when they sell 2,000 cases,their cost per case is $0.22.These costs are considered Pepsi's:

Accepted Answer

A) fixed costs. 
B) variable costs. 
C) marginal costs. 
D) administrative costs. 
A) fixed costs. 
B) variable costs. 
C) marginal costs. 
D) administrative costs.

Question 9

Figure: 13-5b  
-Figure 13-5b shows that when the quantity demanded moves from 3.0 to 6 million units,the profit

Accepted Answer

A) increases from $1.50 to $2.00 per unit. 
B) decreases from $2.00 to $1.50 per unit. 
C) stays the same per unit. 
D) Figure 13-5b does not indicate what happens to profit when the quantity demanded moves. 
A) increases from $1.50 to $2.00 per unit. 
B) decreases from $2.00 to $1.50 per unit. 
C) stays the same per unit. 
D) Figure 13-5b does not indicate what happens to profit when the quantity demanded moves.

Question 10

If competitive market circumstances are such that there are a lot of sellers who use some price competition,some product differentiation,and the purpose of advertising is to differentiate the firm's products from competitors,then _____ must exist in the industry.

Accepted Answer

A) a pure monopoly 
B) an oligopoly 
C) monopolistic competition 
D) pure competition 
A) a pure monopoly 
B) an oligopoly 
C) monopolistic competition 
D) pure competition

Question 11

Which of the following is NOT a cost-oriented approach to pricing?

Accepted Answer

A) experience curve pricing 
B) cost-plus fixed fee pricing 
C) standard markup pricing 
D) loss-leader pricing 
A) experience curve pricing 
B) cost-plus fixed fee pricing 
C) standard markup pricing 
D) loss-leader pricing

Question 12

TB Figure: 1  
-TB Figure 1 represents the six distinct steps in the pricing process.Setting a list price of $199.99 for a new printer would be completed in which cell?

Accepted Answer

A) C 
B) D 
C) E 
D) F 
A) C 
B) D 
C) E 
D) F

Question 13

Figure: 13-3  
-In Figure 13-3,column "B" represents which type of competitive market?

Accepted Answer

A) Pure monopoly 
B) Oligopoly 
C) Monopolistic competition 
D) Pure competition 
A) Pure monopoly 
B) Oligopoly 
C) Monopolistic competition 
D) Pure competition

Question 14

Price elasticity of demand is determined by a number of factors.Which of the following is NOT one of those factors?

Accepted Answer

A) The availability of substitutes. 
B) Type of good (necessity or luxury). 
C) Importance of purchase relative to a person's disposable income. 
D) The cost of production. 
A) The availability of substitutes. 
B) Type of good (necessity or luxury). 
C) Importance of purchase relative to a person's disposable income. 
D) The cost of production.

Question 15

Figure: 13-3  
-Using Figure 13-3,how much price competition is most likely available for video game makers?

Accepted Answer

A) There is almost none; the market sets the price. 
B) There is some competition within a range of prices. 
C) There is generally a price leader that sets the price. 
D) Microsoft, Sony, and Nintendo are aware of each other's prices and may adjust their prices based on the prices of the other 2 firms. 
A) There is almost none; the market sets the price. 
B) There is some competition within a range of prices. 
C) There is generally a price leader that sets the price. 
D) Microsoft, Sony, and Nintendo are aware of each other's prices and may adjust their prices based on the prices of the other 2 firms.

Question 16

There were a number of factors the management team for Strait Crossing Bridge Ltd.(SCBL)had to consider when determining what price to charge users of the Confederation Bridge.Some of the factors that they had to consider were: (1)what they offered to customers,(2)type of user,and (3)________________.

Accepted Answer

A) the weather 
B) number of customers and the usage rate 
C) the time of day 
D) other toll bridges 
A) the weather 
B) number of customers and the usage rate 
C) the time of day 
D) other toll bridges

Question 17

Argue one side of the following statement: Companies who charge premium pricing for required goods (such as home heating and pharmaceuticals)should be allowed to.

Accepted Answer

The answer of Argue one side of the following statement:...

Question 18

A manufacturing company that introduces a product must know or anticipate what specific price its _____ currently charge or will charge in the future.

Accepted Answer

A) information technology departments 
B) subsidiary manufacturing divisions 
C) previous industry relations 
D) present and potential competitors 
A) information technology departments 
B) subsidiary manufacturing divisions 
C) previous industry relations 
D) present and potential competitors

Question 19

The average price Washburn charges for a guitar is $349.This price must cover its average costs of $25 for direct materials and $120 in direct labour.It must also cover fixed expenses of $38,000.Assuming everything else stays the same,the company's planned move to Nashville,Tennessee,will reduce its fixed costs by $4,800.This would cause the slope of the total cost curve to __________ and the break-even quantity to __________.

Accepted Answer

A) decrease; stay the same 
B) decrease; increase 
C) stay the same; decrease 
D) stay the same; increase 
A) decrease; stay the same 
B) decrease; increase 
C) stay the same; decrease 
D) stay the same; increase

Question 20

Elastic demand exists when:

Accepted Answer

A) a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls. 
B) a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases. 
C) an increase in price causes a larger increase in quantity demanded and total revenue falls to zero. 
D) the quantity demanded remains the same regardless of level of price and total revenue is unchange 
A) a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls. 
B) a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases. 
C) an increase in price causes a larger increase in quantity demanded and total revenue falls to zero. 
D) the quantity demanded remains the same regardless of level of price and total revenue is unchange

The price equation formula is price equals list price minus incentives and allowances plus:

Ace Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $6 million and unit variable costs of $5 per pair.If the company charges $15 per pair,how many pairs must it sell to break even?

Which of the following statements about profit objectives is true?

GE has fixed costs of $13B and variable costs for the year of $8B.Their total costs are:

Buyers for grain set prices ahead of time by the marketplace.Sellers in this market are simply informed of the price and the amount that is needed.This market is likely one of a(n):

What are the conditions favouring the use of penetration pricing?

Figure: 13-5b -In Figure 13-5b,as the two diagonal lines on a demand curve graph show a shift from left to right,it most likely represents

When Pepsi sells 1,000 cases of Pepsi,their cost per case is $0.30.However,when they sell 2,000 cases,their cost per case is $0.22.These costs are considered Pepsi's:

Figure: 13-5b -Figure 13-5b shows that when the quantity demanded moves from 3.0 to 6 million units,the profit

If competitive market circumstances are such that there are a lot of sellers who use some price competition,some product differentiation,and the purpose of advertising is to differentiate the firm's products from competitors,then _____ must exist in the industry.

Which of the following is NOT a cost-oriented approach to pricing?

TB Figure: 1 -TB Figure 1 represents the six distinct steps in the pricing process.Setting a list price of $199.99 for a new printer would be completed in which cell?

Figure: 13-3 -In Figure 13-3,column "B" represents which type of competitive market?

Price elasticity of demand is determined by a number of factors.Which of the following is NOT one of those factors?

Figure: 13-3 -Using Figure 13-3,how much price competition is most likely available for video game makers?

Argue one side of the following statement: Companies who charge premium pricing for required goods (such as home heating and pharmaceuticals)should be allowed to.

A manufacturing company that introduces a product must know or anticipate what specific price its _____ currently charge or will charge in the future.

Elastic demand exists when:

Marketing: Customer Value, satisfaction, relationships, and Experiences

Developing Successful Marketing Strategies

Scanning the Marketing Environment

Ethics and Social Responsibility in Marketing

Consumer Behaviour

Organizational Markets and Buyer Behaviour

Reaching Global Markets

Marketing Research: From Information to Action

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Products and Brands

Managing Services

Managing Marketing Channels and Supply Chains

Retailing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Personal Selling and Sales Management

Pulling It All Together: The Strategic Marketing Process

Using Social Media to Connect With Consumers

Filters

Exam 13: Pricing Products and Services

The price equation formula is price equals list price minus incentives and allowances plus:

Ace Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $6 million and unit variable costs of $5 per pair.If the company charges $15 per pair,how many pairs must it sell to break even?

Which of the following statements about profit objectives is true?

GE has fixed costs of $13B and variable costs for the year of $8B.Their total costs are:

Buyers for grain set prices ahead of time by the marketplace.Sellers in this market are simply informed of the price and the amount that is needed.This market is likely one of a(n):

What are the conditions favouring the use of penetration pricing?

Figure: 13-5b -In Figure 13-5b,as the two diagonal lines on a demand curve graph show a shift from left to right,it most likely represents

When Pepsi sells 1,000 cases of Pepsi,their cost per case is $0.30.However,when they sell 2,000 cases,their cost per case is $0.22.These costs are considered Pepsi's:

Figure: 13-5b -Figure 13-5b shows that when the quantity demanded moves from 3.0 to 6 million units,the profit

If competitive market circumstances are such that there are a lot of sellers who use some price competition,some product differentiation,and the purpose of advertising is to differentiate the firm's products from competitors,then _____ must exist in the industry.

Which of the following is NOT a cost-oriented approach to pricing?

TB Figure: 1 -TB Figure 1 represents the six distinct steps in the pricing process.Setting a list price of $199.99 for a new printer would be completed in which cell?

Figure: 13-3 -In Figure 13-3,column "B" represents which type of competitive market?

Price elasticity of demand is determined by a number of factors.Which of the following is NOT one of those factors?

Figure: 13-3 -Using Figure 13-3,how much price competition is most likely available for video game makers?

Argue one side of the following statement: Companies who charge premium pricing for required goods (such as home heating and pharmaceuticals)should be allowed to.

A manufacturing company that introduces a product must know or anticipate what specific price its _____ currently charge or will charge in the future.

Elastic demand exists when:

Marketing: Customer Value, satisfaction, relationships, and Experiences

Developing Successful Marketing Strategies

Scanning the Marketing Environment

Ethics and Social Responsibility in Marketing

Consumer Behaviour

Organizational Markets and Buyer Behaviour

Reaching Global Markets

Marketing Research: From Information to Action

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Products and Brands

Managing Services

Managing Marketing Channels and Supply Chains

Retailing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Personal Selling and Sales Management

Pulling It All Together: The Strategic Marketing Process

Using Social Media to Connect With Consumers

Filters