232.What idea is described as a continuing, concise trade-off of incremental costs against incremental
A. break-even analysis
B. marginal analysis
C. demand analysis
D. cost-benefit analysis
E. situation analysis
233.A continuing, concise trade-
135.Microsoft, Sony, and Nintendo are the three principal firms in the video game market. Using Figure 13-3
above, how much price competition is most likely for video game makers?
A. There is almost none; the market sets the price.
B. There is some compet
213.The sum of the expenses of a firm that is stable and does not change with the quantity of the product that
is produced and sold is referred to as
A. total cost.
B. fixed cost.
C. variable cost.
D. marginal cost.
E. overhead cost.
220.Forever Quilting is a small company that makes quilting kits priced at $120. The costs of the materials
that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses
of $1,000 for rent and insurance, $200 for
46. Figure 13-2 above represents the six steps in setting price. "D" represents the step at which a firm
A. estimate demand and revenue.
B. select an approximate price level.
C. scan competitors for prices of similar products or services.
109.An analysis of a prospective product shows that it is expected to grow by at least 10 percent each year
over the next 5 years, and then enter the maturity phase of its product life cycle. This type of analysis
would provide useful information in which
239.Each month, the owner of a carwash pays $2,500 in rent, $500 in utilities, $750 interest on the business
loan, an insurance premium of $200, and advertising on local bus routes of $250 a month. A full-service
car wash is priced at $10.50. Unit variabl
142.An oligopoly is a competitive market situation where
A. many sellers follow market price for identical, commodity products.
B. one seller sets the price for a unique product.
C. few sellers are sensitive to one another's prices.
D. many sellers compet
115.Which of the following statements regarding the seller's price is most accurate?
A. Internet price changes are regulated by the Internet Fair Practices Act to protect consumers against
B. The seller's price is constrained by the type of
129.In Figure 13-3 above, column "A" represents which type of competitive market?
A. pure monopoly
C. monopolistic competition
D. pure competition
E. monopolistic oligopoly
130.In Figure 13-3 above, column "B" represents which typ
154.A demand curve graph typically appears as
A. a parabola with the apex representing the highest price that can be charged without losing customers.
B an inverted parabola with the lowest point representing the lowest price that can be charged and still
148.Small regional producers selling grocery products have a special problem because they need to set prices
at which both they and their channel members can profit while
A. still maintaining local customer loyalty.
B. trying to go head-to-head or steal m
122.List the following competitive markets from most competitive to least competitive.
A. monopolistic competition, pure monopoly, pure competition, and oligopoly
B. pure competition, monopolistic competition, oligopoly, and pure monopoly
C. pure competit
89. Market share is the ratio of the _ to those of the industry.
A. target return on sales
B. marginal profit of the firm
C. marketing expenses of the firm
D. firm's sales revenues or unit sales
E. profits of the firm
90. Netflix used to charge $14.99 per
103.Which of the following statements about the product life cycle as a pricing constraint is most accurate?
A. The newer a product is, the higher the price that can usually be charged.
B. The later in the product life cycle the product is, the higher the
96. Some specialty-toy retailers pursue a _ pricing objective to generate cash to ward off
A. market share
C. sales revenue
D. single product line
97. For years a local "greasy spoon" diner had customers lining up around
76. Which of the following statements regarding pricing objectives is most accurate?
A. Pricing objectives should never change.
B. Pricing objectives may change depending upon the relative market share of competitors.
C. Pricing objectives are established
82. A target return profit objective implies that a company chooses
A. to set targets that whose performance can be measured quickly.
B. to give up immediate profit in exchange for achieving a higher market share in hopes of penetrating
40. The _ calculation = (Unit price Quantity sold) - Total cost.
A. total revenue
C. variable cost
D. net present value
E. break-even point
41. A firm's profit equation demonstrates that profit equals _.
A. Total cost + Total revenue
B. Total re
68. Selecting an approximate price level would occur during _ of the price-setting process.
A. Step 2
B. Step 3
C. Step 4
D. Step 5
E. Step 6
69. Setting list or quoted prices would occur during _ of the price-setting process.
A. Step 2
B. Step 3
177.Average revenue is
A. the typical or average sales generated for all items within an industry.
B. the average amount of revenue necessary for a business to remain profitable.
C. total revenue divided by the quantity sold.
D. the difference between the
170.Which of the following illustrates movement along the demand curve?
A. Prices remain the same, but there is a significant increase in demand.
B. Prices remain the same, but there is a significant decrease in demand.
C. As the price is raised, the quan
161.Campbell Soup spent seven years and $55 million on a super secret project to produce a line of Intelligent
Quisine (IQ) food products "scientifically proven to lower high levels of cholesterol, blood sugar, and
blood pressure." They were responding to
1) Ho: Of the entire US population over the age of 18, 51.9% of the entire US population is
female. We have rejected Ho because our P-Value falls below .05. This is not a representative
sample. It is a .2 chance of pullin
35. When Pizza Hut announced it was going to add 25 percent more toppings to its Meat Lover's line of
pizzas without increasing their prices, what consumer motivation was it appealing to?
248.Figure 13-7 above shows that by selling 200 pictures, the firm will
A. break even.
B. incur a loss.
C. earn a profit.
D. have no fixed costs.
E. have no variable costs.
249.According to Figure 13-7 above, how much profit will the firm make
244.Jane Westerlund owns a picture-framing shop, The Caplow Co. The average price she receives for a
picture she frames for a customer is $120. This price must cover her costs for a typical framed picture,
which consists of $5 for glass, $2 for matting, $
227.An ironic "upside" to Pets.com's failure was
A. its entire inventory was purchased by PetSmart, their primary competitor.
B. its sock puppet became the "spokespuppet" for BarNone, a financial services firm.
C. its Web site and brand name were purchase
183.Forever Quilting is a company that designs and distributes quilting kits. The kits are priced at $120
each. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The
company has monthly expenses of $1,000 fo
195.In a snack vending machine, consumers can choose one of up to of 20 choices. These snacks are
A. more likely to be price elastic.
B. an ideal example of unitary demand.
C. likely to have a price elasticity equal to 1.
D. likely to have a price elastic