Question 1

Figure 13-5
 
-The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity,price,revenue,cost,and profit scenarios shown in Figure 13-5 above.What is the break-even point quantity for her picture frame store?

Accepted Answer

A)  0
B)  400
C)  800
D)  1,200
E)  2,000F) C) and D)
G) A) and C)

Question 2

List the following competitive markets from most competitive to least competitive.

Accepted Answer

A)  monopolistic competition,pure monopoly,pure competition,and oligopoly
B)  pure competition,monopolistic competition,oligopoly,and pure monopoly
C)  pure competition,monopolistic competition,pure monopoly,and oligopoly
D)  oligopoly,pure competition,monopolistic competition,and pure monopoly
E)  pure monopoly,pure competition,oligopoly,and monopolistic competitionF) All of the above
G) A) and C)

Question 3

There are more than 100 companies that manufacture natural and artificial flavorings used to enhance the taste of food before it is sold to consumers.Some of these manufacturers differentiate themselves from the competition in their advertising by specializing in one or two types of foods for which they provide flavorings.Others use their distribution strategies as a means of differentiating themselves.This industry is most likely an example of

Accepted Answer

A)  pure monopoly.
B)  oligopoly.
C)  monopolistic competition.
D)  bilateral monopoly.
E)  monopolistic oligopoly.F) All of the above
G) B) and C)

Question 4

Factors that limit the range of prices a firm may set are referred to as

Accepted Answer

A)  pricing restraints.
B)  pricing constraints.
C)  demand factors.
D)  pricing barriers.
E)  pricing restrictions.F) A) and D)
G) A) and E)

Question 5

The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Accepted Answer

A)  identify pricing objectives and constraints
B)  determine cost,volume,and profit relationships
C)  estimate demand and revenue
D)  select an approximate price level
E)  make special adjustments to list or quoted priceF) A) and E)
G) A) and B)

Question 6

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Accepted Answer

A)  We need to find the least expensive distributor.
B)  We need to make allowances for large quantity orders.
C)  We need to increase the price during the holiday shopping season.
D)  We need to forget profits right now;just make sure we break even.
E)  We need to hire a professional accountant.F) A) and B)
G) A) and C)

Question 7

Figure 13-4B
 
-In Figure 13-4B above,the demand curve shifts from D₂ to D₃ (B) .This most likely represents

Accepted Answer

A)  an increase in demand resulting from competitor or consumer changes.
B)  an increase in demand that required a decrease in price.
C)  no change in price and no change in demand.
D)  no change in demand or price but a greater profit due to economies of scale.
E)  a decrease in price from $8 to $6 per unit.F) None of the above
G) A) and E)

Question 8

George and Alice Renfro decided to start a family business in 1990 to produce chowchow,a Southern regional food.To determine how they would price the chowchow,the Renfros had to examine (1) the demand for the product (e.g. ,would people eat store-bought?) ;(2) the costs of the jars for and bottling of the chowchow;and (3) the cost to distribute the product to area grocery stores.The Renfros are doing which step of the price-setting process?

Accepted Answer

A)  identifying pricing constraints
B)  estimating break-even points and revenue points
C)  setting the list price
D)  selecting an approximate price level
E)  determining cost,volume,and profit relationshipsF) A) and D)
G) A) and C)

Question 9

Dozens of regional,private brands of peanut butter compete with national brands like Skippy and Jif.In this type of market,

Accepted Answer

A)  both price competition and nonprice competition exist.
B)  these firms must maintain local customer loyalty.
C)  these private brands must go head-to-head or steal market share from nationally recognized brands.
D)  these private brands must keep other regional businesses from entering the market.
E)  these private brands could avoid cannibalization if they sell their product both in stores and online.F) C) and D)
G) A) and B)

Question 10

Which of the following statements about consumer demand as a pricing constraint is most accurate?

Accepted Answer

A)  The price charged by competitors for similar offerings has little effect on the price a seller can charge,usually only if there are very few potential buyers.
B)  The number of potential buyers for the product affects the price a seller can charge,but only if the product is using a push strategy in the channel.
C)  The number of potential buyers for the product affects the price a seller can charge,but only if the product is a necessity item.
D)  The number of potential buyers for the brand affects the price a seller can charge in the growth stage of a product life cycle,but not in the introductory stage.
E)  The number of potential buyers generally affects the price a seller can charge.F) All of the above
G) A) and B)

Question 11

You are selling a new line of T-shirts on the boardwalk.The selling price will be $25 per shirt.The labor cost is $5 per shirt.The administrative costs of operating the company are estimated to be $60,000 annually,and the sales and marketing expenses are $20,000 a year.Additionally,the cost of materials will be $10 per shirt.What is the break-even quantity?

Accepted Answer

A)  2,000 shirts
B)  3,200 shirts
C)  5,334 shirts
D)  8,000 shirts
E)  16,000 shirtsF) A) and E)
G) C) and E)

Question 12

VIZIO's HDTVs are sold through all of the following types of retailers except which?

Accepted Answer

A)  Amazon.com
B)  mass merchandisers,such as Target
C)  its own brick-and-mortar stores
D)  wholesale club stores such as Sam's Club
E)  electronics stores such as Best BuyF) None of the above
G) C) and D)

Question 13

If competitive market circumstances are such that there are few sellers who are sensitive to each other's prices,and the purpose of advertising is to inform but avoid price competition,then ________ must exist in the industry.

Accepted Answer

A)  a pure monopoly
B)  monopolistic competition
C)  pure competition
D)  an oligopoly
E)  oligopolistic competitionF) D) and E)
G) A) and E)

Question 14

Figure 13-7
 
-In the break-even chart in Figure 13-7 above,the wedge ABC represents the firm's

Accepted Answer

A)  fixed costs.
B)  break-even point.
C)  loss.
D)  profit.
E)  total revenue.F) A) and D)
G) A) and C)

Question 15

A graphic presentation of the break-even analysis that shows the intersection of total revenue and total cost to identify profit or loss for a given quantity sold is referred to as a(n)

Accepted Answer

A)  Gantt chart.
B)  demand curve.
C)  ROI analysis.
D)  cross-tabulation.
E)  break-even chart.F) A) and B)
G) A) and C)

Question 16

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Accepted Answer

A)  first-time buyers.
B)  professional musicians.
C)  stars and famous musicians.
D)  guitar collectors and music aficionados.
E)  intermediate-skill players who may become professional musicians.F) A) and B)
G) B) and E)

Question 17

The quantity at which total revenue and total cost are equal is referred to as

Accepted Answer

A)  the tipping point.
B)  the profitability point.
C)  incremental return on investment.
D)  the break-even point.
E)  sustainability.F) A) and E)
G) A) and C)

Question 18

Describe the pricing constraints a firm is likely to face.

Accepted Answer

Pricing constraints are factors that lim...

Question 19

Which of the following represent elements of Step 2 of the price-setting process?

Accepted Answer

A)  constraints and objectives
B)  estimation of demand,sales revenue,and price elasticity
C)  cost estimation,marginal analysis,and break-even analysis
D)  demand for the product class and brand,newness of the product,and competition
E)  market segmentation,targeting,and positioningF) B) and D)
G) A) and E)

Question 20

A maximizing current profit objective implies that a company chooses to

Accepted Answer

A)  set targets for which performance can be measured quickly.
B)  give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
C)  set a profit goal that is often determined by its board of directors.
D)  reduce investment in any further market or product research.
E)  set prices based on return on sales.F) C) and D)
G) A) and B)

Exam 13: Building the Price Foundation

Figure 13-4B -In Figure 13-4B above,the demand curve shifts from D₂ to D₃ (B) .This most likely represents

Correct Answer
verified

Which of the following statements about consumer demand as a pricing constraint is most accurate?

Correct Answer
verified

The quantity at which total revenue and total cost are equal is referred to as

Correct Answer
verified

Correct Answer
verified

If competitive market circumstances are such that there are few sellers who are sensitive to each other's prices,and the purpose of advertising is to inform but avoid price competition,then ________ must exist in the industry.

Correct Answer
verified

The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Correct Answer
verified

Correct Answer
verified

Figure 13-7 -In the break-even chart in Figure 13-7 above,the wedge ABC represents the firm's

Correct Answer
verified

List the following competitive markets from most competitive to least competitive.

Correct Answer
verified

Figure 13-5 -The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity,price,revenue,cost,and profit scenarios shown in Figure 13-5 above.What is the break-even point quantity for her picture frame store?

Correct Answer
verified

VIZIO's HDTVs are sold through all of the following types of retailers except which?

Correct Answer
verified

Which of the following represent elements of Step 2 of the price-setting process?

Correct Answer
verified

Correct Answer
verified

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Correct Answer
verified

Factors that limit the range of prices a firm may set are referred to as

Correct Answer
verified

A graphic presentation of the break-even analysis that shows the intersection of total revenue and total cost to identify profit or loss for a given quantity sold is referred to as a(n)

Correct Answer
verified

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Correct Answer
verified

A maximizing current profit objective implies that a company chooses to

Correct Answer
verified

Dozens of regional,private brands of peanut butter compete with national brands like Skippy and Jif.In this type of market,

Correct Answer
verified

Describe the pricing constraints a firm is likely to face.

Correct Answer
verified
Pricing constraints are factors that lim...
View Answer

Exam 13: Building the Price Foundation

Figure 13-4B -In Figure 13-4B above,the demand curve shifts from D₂ to D₃ (B) .This most likely represents

Correct AnswerverifiedShow Answer

Which of the following statements about consumer demand as a pricing constraint is most accurate?

Correct AnswerverifiedShow Answer

The quantity at which total revenue and total cost are equal is referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If competitive market circumstances are such that there are few sellers who are sensitive to each other's prices,and the purpose of advertising is to inform but avoid price competition,then ________ must exist in the industry.

Correct AnswerverifiedShow Answer

The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 13-7 -In the break-even chart in Figure 13-7 above,the wedge ABC represents the firm's

Correct AnswerverifiedShow Answer

List the following competitive markets from most competitive to least competitive.

Correct AnswerverifiedShow Answer

Figure 13-5 -The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity,price,revenue,cost,and profit scenarios shown in Figure 13-5 above.What is the break-even point quantity for her picture frame store?

Correct AnswerverifiedShow Answer

VIZIO's HDTVs are sold through all of the following types of retailers except which?

Correct AnswerverifiedShow Answer

Which of the following represent elements of Step 2 of the price-setting process?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Correct AnswerverifiedShow Answer

Factors that limit the range of prices a firm may set are referred to as

Correct AnswerverifiedShow Answer

A graphic presentation of the break-even analysis that shows the intersection of total revenue and total cost to identify profit or loss for a given quantity sold is referred to as a(n)

Correct AnswerverifiedShow Answer

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Correct AnswerverifiedShow Answer

A maximizing current profit objective implies that a company chooses to

Correct AnswerverifiedShow Answer

Dozens of regional,private brands of peanut butter compete with national brands like Skippy and Jif.In this type of market,

Correct AnswerverifiedShow Answer

Describe the pricing constraints a firm is likely to face.

Correct AnswerverifiedPricing constraints are factors that lim...View AnswerShow Answer

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Pricing constraints are factors that lim...
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