Marketing Final Exam

1 top aacsb reflective thinking msc blooms

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: . If demand for milk is inelastic, consumers will not change their purchasing habits greatly when the price of milk changes. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Application REF: 307 OBJ: 19-3 KEY: CB&E Model Pricing 12. If the formula for elasticity results in a measure of elasticity ( E) greater than 1, demand is said to be inelastic. ANS: F If E is greater than 1, demand is elastic. PTS: 1 REF: 307 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Analysis 13. If the formula for elasticity results in a measure of elasticity ( E) equal to 1, the increase in sales exactly offsets the decrease in price, so total revenue remains the same. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Analysis REF: 307 OBJ: 19-3 KEY: CB&E Model Pricing 14. When many substitute products are available, demand is inelastic. ANS: F Demand is elastic when there are many substitute products available. PTS: 1 REF: 308 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Comprehension 15. Yield management systems (YMS) were first used by Internet service providers. ANS: F Yield management systems (YMS) were first developed in the airline industry. PTS: 1 REF: 308 Thinking KEY: CB&E Model Pricing OBJ: 19-4 TOP: AACSB Reflective MSC: BLOOMS Comprehension 16. Yield management systems can only be used by service industries. ANS: F As the popularity of yield management systems increases, their use is spreading to manufacturing (in terms of production capacity). PTS: 1 REF: 308 Thinking KEY: CB&E Model Pricing OBJ: 19-4 TOP: AACSB Reflective MSC: BLOOMS Comprehension 17. Firms that price their products solely on the basis of costs are adhering to the marketing concept. ANS: F Firms pricing their products solely on the basis of costs are not following the marketing concept. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 18. Variable costs vary with changes in the level of output, whereas marginal costs do not vary as output changes. ANS: F While variable costs do vary with changes in the level of output, marginal costs are the changes in total costs associated with a one-unit change in output. PTS: 1 Thinking REF: 309 OBJ: 19-5 TOP: AACSB Reflective KEY: CB&E Model Pricing MSC: BLOOMS Knowledge 19. Costs that do not change as output is increased or decreased are called stable costs. ANS: F These are called fixed costs. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 20. Markup pricing, adding an amount to cost to cover expenses and profit, is one of the most common pricing methods used by intermediaries to establish a selling price. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Comprehension REF: 310 OBJ: 19-5 KEY: CB&E Model Pricing 21. A firm has maximized its profits when its marginal revenue exceeds its marginal cost. ANS: F A firm has ma...
View Full Document

This document was uploaded on 09/29/2013.

Ask a homework question - tutors are online