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
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.
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
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.
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
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
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
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
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
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
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
165.Figure 13-4 above shows that when the quantity demanded moves from 3.0 to 4.5 million units along the
demand curve D1, the profit
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.
188.According to Figure 13-6 above, when the price of Newsweek is $1.00 per issue, how many magazines
will it sell?
189.According to Figure 13-6 above, if Newsweek raises its price from $2.0
201.Inelastic demand exists when
A. a small percentage decrease in price produces a smaller percentage increase in quantity demanded and
total revenue falls.
B. a small percentage increase in price produces a smaller percentage increase in quantity demand
207.Price elasticity of demand is determined by a number of factors such as whether the item is a luxury
product or service, the availability of substitutes, the cash outlay of purchase relative to a person's
disposable income, and
A. the stage of the pro
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
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
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
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, $
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
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?
STRATEGIC MARKET PLANNING
STRATEGIC BUSINESS UNITS (SBUs)
a. The Ansoff Model
INNOVATION and COMPETITIV
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
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
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
Black Gold not so Golden
In April 2010, a major fire on an oil rig in the Gulf of Mexico owned by BP and operated by
Transocean has the potential of hampering the development of offshore oil production and
costing both companies millions i
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
Your Financial Position
This year, do you feel
Than last year?
United States Sentiments
US consumer sentiment
For real GDP and real exports of goods and services, they run countercyclical from each
other. Exports of goods and services is more volatile than GDP. As the exports of goods
and services increases, the quantity of all final goods and services prod
New Product Lines
Additional Product Lines
THE DEVELOPMENT PROCESS
NEW PRODUCT STRATEGY
SUBJECT:CBA AOLTF ASSESMENT
Albuquerque and the Santa Fe area are in desperate need of
power. An electric utility company is considering opening a new power
facility in New Mexico to help them out. The