Economic conditions cannot be ignored by marketers

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126. Economic conditions cannot be ignored by marketers when setting prices. Among the important domestic economic considerations are: A. unemploym ent rates. B. distribution of wealth. C. levels of disposable income. D. interest rates. E. All of these. 127. Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing? 128. Cindy went shopping for a new outfit. She bought a low-priced shirt at a discount store, and combined it with an expensive designer skirt. Which of the following terms best describes Cindy's actions?
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129. Thanh owns a shoe store. In this market, there are many firms competing for the same customers, but the products offered differ by quality and price. Out of the four levels of competition, which one does this market represent? 130. In which of the following levels of competition does one firm control the industry and restrict competition? A. Mono poly B. Oligopoly C. Monopolistic competition D. Pure competition E. Dominant competition 131. Winston's Ice Cream Shop has been in the same location for two decades. Last week, a new ice cream shop opened up just one block down the street. Winston's decides to sell ice cream below cost in order to drive the new shop out of business. What kind of pricing is Winston's using?
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132. A major hotel chain found that if they were to reduce the cost of the ice cream they currently served they would be able to save over 400 employees jobs. Therefore, they switched from a high priced brand of ice cream to a more moderate priced ice cream. This is known as the: 133. The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the:
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