Question 1

How can the price at which a new product is introduced influence the entrance of competition into a market?

Accepted Answer

The price at which a new product is intr...

Question 2

A customer who is ____ is likely to say,"People notice when you buy the most expensive brand of a product."

Accepted Answer

A)   price-conscious
B)   quality-conscious
C)   value-conscious
D)   socially conscious
E)   prestige-sensitiveF) A) and C)
G) A) and E)

Question 3

Knowing the number of units necessary to break even is important in setting the price.

Accepted Answer

A) True 
 B)False

Question 4

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

Accepted Answer

A) True 
 B)False

Question 5

Because buyers have unlimited purchasing power,they do not have to allocate it to the most desired products.

Accepted Answer

A) True 
 B)False

Question 6

A certain location of O'Charley's Restaurant has annual fixed costs of $200,000.If an average tab at the restaurant is $60 and the variable costs per tab is $20,how many groups of customers must O'Charley's serve per year in order to break even?

Accepted Answer

A)   2,000
B)   5,000
C)   10,000
D)   3,333
E)   2,500F) B) and E)
G) D) and E)

Question 7

What equation shows organizations the relationship between price and profit?

Accepted Answer

A)   Total Variable Costs + Total Fixed Costs = Sales - Profit
B)   Price = Profit per Item  ×	imes×  Number of Units Sold
C)   (Price  ×	imes×  Quantity Sold) - Total Costs = Profits
D)   (Price - Profits)  ×	imes×  Total Costs = Sales
E)   Total Costs = (Price  ×	imes× Quantity Sold) - Profits F) A) and B)
G) B) and C)

Question 8

Use the following to answer the questions.
Concession Supply sells hotdogs,buns,and nacho ingredients to several major league ballparks across the country.Currently,Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200,Selling price = $16,and Variable costs = $6.
-Refer to Scenario 19.1.If Concession Supply increased its price by 10 percent and experienced only a 2 percent decrease in the demand for hotdogs,the demand would be

Accepted Answer

A)   inelastic.
B)   common.
C)   prestige.
D)   elastic.
E)   marginal.F) A) and D)
G) C) and D)

Question 9

Rent is usually a fixed cost.

Accepted Answer

A) True 
 B)False

Question 10

What type of discount is given to a business purchaser for performing activities such as transporting,storing,and selling?

Accepted Answer

A)   Quantity
B)   Cash
C)   Geographic
D)   Service
E)   TradeF) C) and D)
G) A) and B)

Question 11

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Accepted Answer

A) True 
 B)False

Question 12

To determine the breakeven point in units,divide the fixed costs by

Accepted Answer

A)   total costs.
B)   variable costs time price.
C)   price minus variable costs.
D)   price per unit.
E)   total revenue minus fixed costs.F) B) and D)
G) C) and D)

Question 13

A firm that competes on a price basis is unable to change prices frequently.

Accepted Answer

A) True 
 B)False

Question 14

Marketers should set prices consistent with marketing goals,not with the corporate mission.

Accepted Answer

A) True 
 B)False

Question 15

Nonprice competition does not permit unique product features,higher product quality,and customer service.

Accepted Answer

A) True 
 B)False

Question 16

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001,total revenue rises $35.The $35 represents the firm's

Accepted Answer

A)   average revenue.
B)   marginal revenue.
C)   price elasticity.
D)   average variable revenue.
E)   average total cost.F) B) and D)
G) B) and E)

Question 17

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Accepted Answer

The answer of How would pricing decisions differ for a...

Question 18

Seasonal discounts provide price incentives to customers during peak selling seasons.

Accepted Answer

A) True 
 B)False

Question 19

If a product has an inelastic demand and the manufacturer raises its price,

Accepted Answer

A)   total revenue will increase.
B)   quantity demanded will decrease.
C)   the demand schedule will shift.
D)   the demand will become more inelastic.
E)   total revenue will decrease.F) C) and E)
G) B) and C)

Question 20

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges,the retailer is paying a(n) ____ price.

Accepted Answer

A)   F.O.B.destination
B)   F.O.B.factory
C)   transfer
D)   postage-stamp
E)   base-pointF) C) and D)
G) All of the above

Exam 19: Strategic Pricing Management

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges,the retailer is paying a(n) ____ price.

Correct Answer
verified

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Correct Answer
verified

Seasonal discounts provide price incentives to customers during peak selling seasons.

Correct Answer
verified

If a product has an inelastic demand and the manufacturer raises its price,

Correct Answer
verified

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001,total revenue rises $35.The $35 represents the firm's

Correct Answer
verified

What type of discount is given to a business purchaser for performing activities such as transporting,storing,and selling?

Correct Answer
verified

Correct Answer
verified

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Correct Answer
verified

Marketers should set prices consistent with marketing goals,not with the corporate mission.

Correct Answer
verified

A certain location of O'Charley's Restaurant has annual fixed costs of $200,000.If an average tab at the restaurant is $60 and the variable costs per tab is $20,how many groups of customers must O'Charley's serve per year in order to break even?

Correct Answer
verified

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

Correct Answer
verified

Knowing the number of units necessary to break even is important in setting the price.

Correct Answer
verified

A firm that competes on a price basis is unable to change prices frequently.

Correct Answer
verified

Because buyers have unlimited purchasing power,they do not have to allocate it to the most desired products.

Correct Answer
verified

Rent is usually a fixed cost.

Correct Answer
verified

Nonprice competition does not permit unique product features,higher product quality,and customer service.

Correct Answer
verified

A customer who is ____ is likely to say,"People notice when you buy the most expensive brand of a product."

Correct Answer
verified

How can the price at which a new product is introduced influence the entrance of competition into a market?

Correct Answer
Answered by ExamLex AI
The price at which a new product is intr...
View Answer

To determine the breakeven point in units,divide the fixed costs by

Correct Answer
verified

What equation shows organizations the relationship between price and profit?

Correct Answer
verified

Exam 19: Strategic Pricing Management

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges,the retailer is paying a(n) ____ price.

Correct AnswerverifiedShow Answer

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Correct AnswerverifiedShow Answer

Seasonal discounts provide price incentives to customers during peak selling seasons.

Correct AnswerverifiedShow Answer

If a product has an inelastic demand and the manufacturer raises its price,

Correct AnswerverifiedShow Answer

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001,total revenue rises $35.The $35 represents the firm's

Correct AnswerverifiedShow Answer

What type of discount is given to a business purchaser for performing activities such as transporting,storing,and selling?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Correct AnswerverifiedShow Answer

Marketers should set prices consistent with marketing goals,not with the corporate mission.

Correct AnswerverifiedShow Answer

A certain location of O'Charley's Restaurant has annual fixed costs of $200,000.If an average tab at the restaurant is $60 and the variable costs per tab is $20,how many groups of customers must O'Charley's serve per year in order to break even?

Correct AnswerverifiedShow Answer

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

Correct AnswerverifiedShow Answer

Knowing the number of units necessary to break even is important in setting the price.

Correct AnswerverifiedShow Answer

A firm that competes on a price basis is unable to change prices frequently.

Correct AnswerverifiedShow Answer

Because buyers have unlimited purchasing power,they do not have to allocate it to the most desired products.

Correct AnswerverifiedShow Answer

Rent is usually a fixed cost.

Correct AnswerverifiedShow Answer

Nonprice competition does not permit unique product features,higher product quality,and customer service.

Correct AnswerverifiedShow Answer

A customer who is ____ is likely to say,"People notice when you buy the most expensive brand of a product."

Correct AnswerverifiedShow Answer

How can the price at which a new product is introduced influence the entrance of competition into a market?

Correct AnswerAnswered by ExamLex AIThe price at which a new product is intr...View AnswerShow Answer

To determine the breakeven point in units,divide the fixed costs by

Correct AnswerverifiedShow Answer

What equation shows organizations the relationship between price and profit?

Correct AnswerverifiedShow Answer

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
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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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Correct Answer
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Correct Answer
Answered by ExamLex AI
The price at which a new product is intr...
View Answer

Correct Answer
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Correct Answer
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