Principle of marketing Chapter 10 MCQ

7/25/2019 Principle of marketing Chapter 10 MCQ

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Chapter 10 Pricing Products: Understanding and Capturing Customer Value

1) ________ is the amount of money charged for a product or service.A) Experience curveB) Demand curve

C) PriceD) WageE) a!aryAns"er# CDiff# 1 Page $ef# %&'(i!!# Concept*+ective# 1',1

%) Price is the on!y e!ement in the mar(eting mix that produces ________.A) revenueB) varia*!e costs

C) expensesD) outfixed costsE) sta*i!ityAns"er# ADiff# 1 Page $ef# %&'(i!!# Concept*+ective# 1',1

-) ________ is an important e!ement in the mar(eting mix. t is the on!y e!ement that does notrepresent costs.A) Current profit maximi/ation

B) 0ar(et share !eadershipC) PriceD) Product ua!ity !eadershipE) 2he target mar(etAns"er# CDiff# 1 Page $ef# %&'(i!!# Concept*+ective# 1',1

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6) Consumer perceptions of the product7s va!ue set the ________ for prices.A) demand curveB) f!oorC) cei!ingD) varia*!e cost

E) imageAns"er# CDiff# % Page $ef# %&1(i!!# Concept*+ective# 1',%

8) Product costs set a9n) ________ to a product7s price.A) demand curveB) f!oorC) cei!ingD) *rea(,even costE) experience curveAns"er# BDiff# % Page $ef# %&1(i!!# Concept*+ective# 1',%

:) Which of the fo!!o"ing is a customer,oriented approach to pricing;A) va!ue,*ased pricingB) sea!ed,*id pricingC) *rea(,even pricingD) target profit pricingE) C and DAns"er# ADiff# % Page $ef# %&1(i!!# Concept*+ective# 1',%


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>)n ________4 price is considered a!ong "ith the other mar(eting mix varia*!es *efore themar(eting program is set.A) =a!ue,*ased pricingB) Cost,*ased pricingC) =aria*!e costs

D) Price e!asticityE) Bui!ding the mar(eting mixAns"er# ADiff# % Page $ef# %&1(i!!# Concept*+ective# 1',%

&) =a!ue,*ased pricing is the reverse process of ________.A) varia*!e cost pricingB) cost,p!us pricingC) cost,*ased pricingD) good,va!ue pricingE) va!ue,added pricingAns"er# CDiff# % Page $ef# %&1(i!!# Concept*+ective# 1',%

1') With ________4 price is set to match consumers7 perceptions of product va!ue.A) varia*!e cost pricingB) cost,p!us pricingC) cost,*ased pricingD) va!ue,*ased pricingE) every day !o" pricingAns"er# DDiff# % Page $ef# %&1(i!!# Concept*+ective# 1',%

11) 0easuring ________ can *e difficu!t. A company might conduct surveys or experiments totest this in the different products they offer.A) price e!asticityB) the demand curveC) perceived va!ue

D) *rea(,even pricingE) uantity supp!iedAns"er# CDiff# - Page $ef# %&%AACB# Communication(i!!# Concept*+ective# 1',%

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1%) ?nderpriced products se!! very "e!!4 *ut they produce !ess revenue than they "ou!d have ifprice "ere raised to the ________ !eve!.A) perceivedB) va!ue,*asedC) varia*!e

D) demand curveE) price,f!oorAns"er# ADiff# % Page $ef# %&%(i!!# Concept*+ective# 1',%

1-) f a se!!er charges ________ than the *uyer7s perceived va!ue4 the company7s sa!es "i!!________.A) more@ *enefitB) more@ sufferC) !ess@ increaseD) !ess@ sufferE) none of the a*oveAns"er# BDiff# % Page $ef# %&%(i!!# Concept*+ective# 1',%

16)ome companies have adopted a ________ strategy4 offering +ust the right com*ination ofua!ity and good service at a fair price.A) =a!ue,*ased pricingB) ood,va!ue pricingC) Cost,p!us pricingD) o",price imageE) one of the a*oveAns"er# BDiff# 1 Page $ef# %&-(i!!# Concept*+ective# 1',%

18) Wa!,0art is famous for using "hat important type of va!ue pricing;A) competition,*ased pricingB) everyday !o" pricing

C) cost,p!us pricingD) *rea(,even pricingE) penetration pricingAns"er# BDiff# % Page $ef# %&-(i!!# Concept*+ective# 1',%

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1:) ________ invo!ves charging a constant4 everyday !o" price "ith fe" or no temporary pricediscounts.A) 5igh,!o" pricingB) 2arget pricingC) Cost,p!us pricing

D) EDPE) Penetration pricingAns"er# DDiff# % Page $ef# %&-(i!!# Concept*+ective# 1',%

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%') When there is price competition4 many companies adopt ________ rather than cutting pricesto match competitors.A) pricing po"erB) va!ue,added strategiesC) fixed costs

D) price e!asticityE) image pricingAns"er# BDiff# % Page $ef# %&-(i!!# Concept*+ective# 1',%

%1) $yanair offers free f!ights to a uarter of its customers and roc(,*ottom prices to many of itsother customers. $yanair then charges for a!! extra services4 such as *aggage hand!ing and in,f!ight refreshments. Which of the fo!!o"ing *est descri*es $yanair7s pricing method;A) va!ue,added pricingB) !o",cost pricingC) cost,p!us pricingD) high,!o" pricingE) image pricingAns"er# BDiff# % Page $ef# %&8(i!!# Concept*+ective# 1',%

%%) ________ pricing invo!ves setting prices *ased on the costs for producing4 distri*uting4 andse!!ing the product p!us a fair rate of return for the company7s efforts and ris(s.A) =a!ue,*asedB) ixed costC) Cost,*asedD) =aria*!eE) (immingAns"er# CDiff# 1 Page $ef# %&8(i!!# Concept*+ective# 1',-

%-) ixed costs ________ as the num*er of units produced increases.A) decrease

B) increaseC) divide in ha!fD) remain the sameE) increase at a diminishing rateAns"er# DDiff# % Page $ef# %&8(i!!# Concept*+ective# 1',-

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%6) Costs that do not vary "ith production or sa!es !eve! are referred to as ________.A) fixed costsB) varia*!e costsC) target costsD) tota! costs

E) unit costsAns"er# ADiff# 1 Page $ef# %&8(i!!# Concept*+ective# 1',-

%8) $ent4 e!ectricity and executive sa!aries are examp!es of ________.A) fixed costsB) varia*!e costsC) accumu!ated costsD) tota! costsE) mar(eting costsAns"er# ADiff# % Page $ef# %&8(i!!# Concept*+ective# 1',-

%:) Costs that vary direct!y "ith the !eve! of production are referred to as ________.A) fixed costsB) varia*!e costsC) target costsD) tota! costsE) unit costsAns"er# BDiff# 1 Page $ef# %&:(i!!# Concept*+ective# 1',-

%


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%>) $AC is the acronym for "hich concept re!ated to costs at different !eve!s of production;A) strategic reasoning and costsB) short,run accounting costsC) short,run average costD) strategic rights and company

E) strategic revenues and costsAns"er# CDiff# % Page $ef# %&:(i!!# Concept*+ective# 1',-

%&) As production "or(ers *ecome *etter organi/ed and more fami!iar "ith euipment4 theaverage cost per unit decreases. 2his is ca!!ed the ________.A) demand curveB) experience curveC) short,run average cost curveD) !ong,run average cost curveE) margina! uti!ityAns"er# BDiff# 1 Page $ef# %&:(i!!# Concept*+ective# 1',-

-') With a higher vo!ume of product4 most companies can expect to ________.A) gain economies of sca!eB) *ecome !ess efficientC) see average costs increaseD) have a straight4 hori/onta! !earning curveE) find competitors using the experience curve strategica!!yAns"er# ADiff# % Page $ef# %&:(i!!# Concept*+ective# 1',-

-1) 2he experience curve revea!s that ________.A) repetition in production !o"ers costsB) repetition in production enhances efficiencyC) the average cost drops "ith accumu!ated production experienceD) A4 B4 and C

E) none of the a*oveAns"er# DDiff# - Page $ef# %&:(i!!# Concept*+ective# 1',-

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-%) When a do"n"ard,s!oping experience curve exists4 a company shou!d usua!!y ________ these!!ing price of that product in order to *ring in higher revenues.A) increaseB) great!y increaseC) decrease

D) not a!terE) none of the a*oveAns"er# CDiff# - Page $ef# %&(i!!# Concept*+ective# 1',-

61) 0any peop!e fee! that ________ pricing is fairer to *oth *uyers and se!!ers. e!!ers earn a fairreturn on their investment *ut do not ta(e advantage of *uyers "hen *uyers7 demand *ecomesgreat.A) varia*!eB) mar(upC) e!asticityD) ine!asticityE) penetrationAns"er# BDiff# % Page $ef# %&>AACB# Ethica! $easoning(i!!# Concept*+ective# 1',-

6%) Which of the fo!!o"ing is a cost,*ased approach to pricing;A) va!ue,*ased pricing

B) going,rate pricingC) target profit pricingD) good va!ue pricingE) A and CAns"er# CDiff# % Page $ef# %&>(i!!# Concept*+ective# 1',-

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6-) Brea(,even pricing4 or a variation ca!!ed ________4 is "hen the firm tries to determine theprice at "hich it "i!! *rea( even or ma(e the profit it is see(ing.A) competition,*ased pricingB) target profit pricingC) fixed cost pricing

D) va!ue,*ased pricingE) customer,*ased pricingAns"er# BDiff# 1 Page $ef# %&>(i!!# Concept*+ective# 1',-

66) 2arget profit pricing uses the concept of a ________4 "hich sho"s the tota! cost and tota!revenue expected at different sa!es vo!ume !eve!s.A) va!ue,*ased chartB) *rea(,even chart

C) competition,*ased chartD) demand,curveE) unit costAns"er# BDiff# % Page $ef# %&>(i!!# Concept*+ective# 1',-

68) 2he *rea(,even vo!ume is the point at "hich ________.A) the tota! revenue and tota! costs !ines intersectB) demand eua!s supp!yC) the production of one more unit "i!! not increase profitD) the company can pay a!! of its !ong,term de*tE) a firm7s profit goa! is reachedAns"er# ADiff# - Page $ef# %&>(i!!# Concept*+ective# 1',-

6:) ________ pricing "or(s on!y if that price actua!!y *rings in the expected !eve! of sa!es.A) E!asticityB) 0ar(upC) =aria*!e

D) ne!asticityE) 2arget profitAns"er# EDiff# - Page $ef# %&>(i!!# Concept*+ective# 1',-

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81) Companies may set prices !o" for "hich of the fo!!o"ing reasons ECEP2 ________.A) to prevent competition from entering the mar(etB) to sta*i!i/e the mar(etC) to create excitement for a productD) to prepare for an easy exit from a mar(et

E) to match a competitorAns"er# DDiff# % Page $ef# %&&(i!!# Concept*+ective# 1',6

8%) n order to form a consistent and effective integrated mar(eting program4 price decisionsshou!d *e coordinated "ith each of the fo!!o"ing ECEP2 ________.A) product designB) distri*utionC) competitors7 prices

D) promotion decisionsE) mar(eting o*+ectivesAns"er# CDiff# % Page $ef# %&&(i!!# Concept*+ective# 1',6

8-) With target costing4 mar(eters "i!! first ________ and then ________.A) *ui!d the mar(eting mix@ identify the target mar(etB) identify the target mar(et@ *ui!d the mar(eting mixC) design the product@ determine its costD) use s(imming pricing@ penetrating pricingE) determine a se!!ing price@ target costs to ensure that the price is metAns"er# EDiff# % Page $ef# -''(i!!# Concept*+ective# 1',6

86) Price setting is usua!!y determined *y ________ in sma!! companies.A) top managementB) mar(eting departmentsC) sa!es departmentsD) divisiona! managers

E) cross,functiona! teamsAns"er# ADiff# % Page $ef# -''(i!!# Concept*+ective# 1',6

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8&) ?nder ________4 the mar(et consists of many *uyers and se!!ers "ho trade over a range ofprices rather than a sing!e mar(et price.A) pure competitionB) monopo!istic competitionC) o!igopo!istic competition

D) pure monopo!yE) socia!ismAns"er# BDiff# % Page $ef# -'%(i!!# Concept*+ective# 1',6

:') ?nder ________4 the mar(et consists of a fe" se!!ers "ho are high!y sensitive to each other7spricing and mar(eting strategies.A) pure competitionB) monopo!istic competition

C) o!igopo!istic competitionD) pure monopo!yE) capita!ismAns"er# CDiff# % Page $ef# -'%(i!!# Concept*+ective# 1',6

:1) onregu!ated monopo!ies are free to price at "hat the mar(et "i!! *ear. 5o"ever4 they donot a!"ays charge the fu!! price for a num*er of reasons. What is 2 one of those reasons;A) 2hey don7t "ant to attract competition.B) 2hey "ant to penetrate the mar(et faster "ith a !o" price.C) 2hey have a fear of government regu!ation.D) 2hey "ant to encourage government regu!ations.E) 2hey "ant to p!ease a !arge group of consumers.Ans"er# DDiff# - Page $ef# -'-(i!!# Concept*+ective# 1',6

:%) 2he re!ationship *et"een the price charged and the resu!ting demand !eve! can *e sho"n asthe ________.A) demand curve

B) varia*!e costC) target costD) *rea(,even pricingE) experience curveAns"er# ADiff# 1 Page $ef# -'-(i!!# Concept*+ective# 1',6

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:-) Consumers usua!!y perceive higher,priced products as ________.A) out of reach for most peop!eB) having high ua!ityC) having high profit marginsD) having cost,*ased prices

E) *eing in the introductory stage of the product !ife cyc!eAns"er# BDiff# - Page $ef# -'-(i!!# Concept*+ective# 1',6

:6) Why do mar(eters consider prestige goods to *e an exception to the typica! demand curve;A) 2he demand curve for prestige goods s!opes do"n"ard and to the right.B) ncreasing the price of prestige goods can ma(e them seem more desira*!e.C) Demand for prestige goods often is greater than supp!y.D) Prestige products such as diamonds4 sapphires4 and emera!ds are nonrene"a*!e resources.

E) Customers are more a"are of any price changes to prestige goods.Ans"er# BDiff# - Page $ef# -'-(i!!# Concept*+ective# 1',6

:8) Which of the fo!!o"ing is true a*out the demand curve;A) t is used to i!!ustrate the effect of price on the uantity supp!ied.B) t is a!"ays graphica!!y depicted *y a straight !ine.C) t sho"s the uantity of product customers "i!! *uy in a mar(et during a period of time evenif other factors change.D) t usua!!y s!opes up"ard and to the right.E) t sho"s the re!ationship *et"een product demand and product price.Ans"er# EDiff# - Page $ef# -'-(i!!# Concept*+ective# 1',6

::) When i*son uitar Corporation4 !ong (no"n for its high ua!ity instruments4 !o"ered itsprices to compete more effective!y "ith Fapanese riva!s4 the company so!d fe"er guitars. Whichof the fo!!o"ing *est exp!ains this;A) 2he i*son guitars "ere not as "e!! made as the Fapanese guitars.B) 2he mar(et "as a!ready f!ooded "ith guitars.

C) 2he sound of the i*son guitar "as not as good as the Fapanese guitars.D) Customers did not distinguish the superiority of the i*son guitar "hen it "as at a !o"erprice.E) Customers had come to expect a higher price for a i*son guitar.Ans"er# DDiff# - Page $ef# -'-(i!!# Concept*+ective# 1',6

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) Fimmy7s 5ard"are4 an independent !oca! retai!er4 is !osing *usiness to Wa!,0art. 2his is most!i(e!y *ecause he cannot match Wa!,0art7s pricing strategy of ________.A) EDPB) EC) fixed prices

D) negotiated pricingE) s(imming pricingAns"er# ADiff# % Page $ef# %&-AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',%


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>1) *ox -:' decides to add a free su*scription to B maga/ine "ith every game *ought inan effort to differentiate its offering from P- games. 2his is an examp!e of ________.A) good,va!ue pricingB) add,on pricingC) product,support pricing

D) va!ue,added pricingE) cost,*ased pricingAns"er# DDiff# % Page $ef# %&-AACB# $ef!ective 2hin(ing(i!!# App!ication*+ective# 1',%

>%) 2he !ong,run average cost curve 9$AC) he!ps the producer understand "hich of thefo!!o"ing;A) t sho"s ho" !arge a *usiness shou!d *e4 to *e most efficient.

B) t dea!s main!y "ith competitors7 prices.C) t dea!s main!y "ith externa! factors.D) a!! of the a*oveE) none of the a*oveAns"er# ADiff# % Page $ef# %&:AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',-

>-) Assume a manufacturer "ith fixed costs of I1''4'''4 a varia*!e cost of I1'4 and expectedsa!es of 8'4''' units "ants to earn a %',percent mar(up on sa!es. What is the manufacturer7smar(up price;A) I16B) I18C) I1>D) I1>.8'E) none of the a*oveAns"er# BDiff# - Page $ef# %&AACB# $ef!ective 2hin(ing(i!!# App!ication*+ective# 1',-

>8) A company faces fixed costs of I1''4''' and varia*!e costs of I>.''Junit. 2hey p!an todirect!y se!! their product to the mar(et for I1%.''. 5o" many units must they produce and se!!to *rea( even;

A) %'4'''B) %84'''C) 6'4'''D) 8'4'''E) not enough information to ca!cu!ateAns"er# BDiff# % Page $ef# %&>AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',-

>:) Ecstasy Pharmaceutica!s faces fixed costs "ith their ne" drug of I14'''4'''. 2he companyse!!s the drug in *ott!es of 8' pi!!s for I1'.''. 2hey estimate that they must se!! %''4''' *ott!esto *rea( even. What is the tota! cost to produce a *ott!e of 8' pi!!s;A) I%.8'B) I8.''C) I:.''D) I


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>AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',-

>>) As a manufacturer decreases price4 ________ vo!ume increases.A) target

B) *rea(,evenC) cost,p!us pricingD) tota! costE) sa!esAns"er# BDiff# - Page $ef# %&&AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',-

>&) PK surveyed the mar(et and identified an unserved segment of e!ectric tooth*rush mar(et.?sing these resu!ts4 they created pin*rush. 2he unorthodox order of this mar(eting mix decisionis an examp!e of ________.A) competition,*ased pricingB) cost,p!us pricingC) target costingD) va!ue,*ased pricingE) penetration pricingAns"er# CDiff# % Page $ef# -''AACB# $ef!ective 2hin(ing(i!!# App!ication*+ective# 1',6

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&') Poo!Pa( produces c!imate,contro! systems for !arge s"imming poo!s. 2he company7scustomers are more concerned a*out service support for maintaining a system than its initia!price. Poo!Pa( may use this (no"!edge to *ecome more competitive through ________.A) target costingB) va!ue pricing

C) cost,p!us pricingD) a nonprice positionE) s(imming pricingAns"er# DDiff# % Page $ef# -''AACB# $ef!ective 2hin(ing(i!!# App!ication*+ective# 1',-

&1) By p!edging to *e a !eader in providing c!ean4 rene"a*!e energy sources and deve!opingproducts and services that he!p consumers protect the environment4 reen 0ountain Po"er

competes successfu!!y against HcheaperH *rands that focus on more price,sensitive consumers.reen 0ountain Po"er has the firm *e!ief that even (i!o"att,hours can *e ________.A) cost,p!us pricedB) a demand curveC) differentiatedD) va!ue,*ased pricedE) none of the a*oveAns"er# CDiff# - Page $ef# -''AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',6

&%) n =in de! 0ar4 Chi!e4 there are a do/en stores specia!i/ing in se!!ing the same ua!ity ofseafood products on one street. An individua! store dare not charge more than the going price"ithout the ris( of !osing *usiness to the other stores that are se!!ing the fish at a common price.2his is an examp!e of "hat type of mar(et;A) pure competitionB) monopo!istic competitionC) o!igopo!istic competitionD) pure monopo!yE) socia!istAns"er# A

Diff# % Page $ef# -'%AACB# $ef!ective 2hin(ing(i!!# App!ication*+ective# 1',6

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&:) Companies are fortunate to have demand that is more ________ *ecause they may *e a*!e toset higher prices.A) e!asticB) externa!C) interna!

D) ine!asticE) fixedAns"er# DDiff# % Page $ef# -'6AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',6

&


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Refer to the scenario below to answer the following questions.

A!den 0anufacturing produces sma!! (itchen app!iances*!enders4 hand mixers4 ande!ectric s(i!!etsunder the *rand name irst eneration. A!den attempts to target ne"!y"eds and

first,time home *uyers "ith this *rand.

n considering that most young househo!ds have !imited financia! resources4 A!den hasattempted to engage in target costing. Hn doing this4H 0i!t A!den stated4 H"e have *etter contro!over (eeping price right in !ine "ith customers.H

A!den manufactures a three,speed *!ender4 its top se!!er4 and a five,speed *!ender. 2hehand mixers are manufactured in t"o sty!esa sma!! hand,he!d mixer "ith t"o rotating *eaters

and a simi!ar sty!e that comes "ith an optiona! stand and attached mixing *o"!. A!den7stemperature,contro!!ed s(i!!ets are manufactured in one sty!e "ith three co!or options.

Hur product offerings are narro"er4H 0i!t A!den added4 H*ut our !ine "or(ers (no" eachproduct !i(e the *ac( of their hands. 2his a!!o"s us to produce superior products "hi!e ho!dingour prices !o".H

&>) 0i!t A!den says that his !ine "or(ers H(no" each product !i(e the *ac( of their hands4H andthat this (no"!edge he!ps the company (eep its prices !o". 2his indicates that A!den0anufacturing most !i(e!y uses "hich of the fo!!o"ing strategies;A) cost,p!us pricingB) va!ue,*ased pricingC) the experience curveD) cost,*ased pricingE) target profit pricingAns"er# CDiff# % Page $ef# %&:AACB# Ana!ytic (i!!s

(i!!# App!ication*+ective# 1',%

&&) 0i!t A!den uses a target costing strategy. Which of the fo!!o"ing is he most !i(e!y to do inexecuting this strategy;A) *ase his price on competitors7 pricesB) use everyday !o" pricingC) use a *rea(,even chart to determine pricingD) start "ith customer,va!ue considerationsE) start *y determining the costs of a ne" productAns"er# DDiff# % Page $ef# -''AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',6

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1'') f A!den raises the price on the handhe!d mixer *y % percent and uantity demanded fa!!s *y1' percent "hat is the price e!asticity of demand;A) L8B) L>C) L1%

D) 8E) 1%Ans"er# ADiff# - Page $ef# -'6AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',6

1'1) When faced "ith price competition cutting prices is often not the *est ans"er.Ans"er# 2$?EDiff# % Page $ef# %&-

AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',1

1'%) Prices have a direct impact on a company7s *ottom !ine.Ans"er# 2$?EDiff# 1 Page $ef# %&'(i!!# Concept*+ective# 1',1

1'-) Demand and consumer va!ue perceptions set the f!oor for prices.Ans"er# AEDiff# % Page $ef# %&1(i!!# Concept*+ective# 1',%

1'6) Product costs set a f!oor to the price@ consumer perceptions of the product7s va!ue set thecei!ing.Ans"er# 2$?EDiff# % Page $ef# %&1(i!!# Concept*+ective# 1',%

1'8) =a!ue,*ased pricing is *eing used "hen costs vary direct!y "ith the !eve! of product.Ans"er# AEDiff# - Page $ef# %&1(i!!# Concept*+ective# 1',%

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1':) =a!ue,*ased pricing uses the company7s perception of va!ue.Ans"er# AEDiff# % Page $ef# %&1(i!!# Concept*+ective# 1',%

1'


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11-) An up"ard,s!oping experience curve is *eneficia! for a company.Ans"er# AEDiff# - Page $ef# %&AACB# Ana!ytic (i!!s

(i!!# App!ication*+ective# 1',-

16:) A mar(eter7s fixed costs are I6''4'''4 the varia*!e cost is I1:4 and they expect the productto se!! for I%6. What is their *rea(,even point in do!!ar sa!es;Ans"er# 2he *rea(,even point in do!!ar sa!es is I14%''4'''.Diff# - Page $ef# %&>AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',-

16) Who typica!!y sets prices in sma!! companies; n !arge companies;Ans"er# 2op management sets prices in sma!! companies4 "hereas divisiona! or product !inemanagers typica!!y set prices in !arge companies.Diff# % Page $ef# -''AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',6

16&) Exp!ain a pure monopo!y.Ans"er# 2he mar(et consists of one se!!er that dominates the mar(et.Diff# % Page $ef# -'-AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',6

18') f demand is e!astic4 "i!! se!!ers consider !o"ering their prices; Exp!ain.Ans"er# Mes. A !o"er price "i!! produce more needed revenue4 as consumers "i!! respond to thechange in price and *uy more.Diff# % Page $ef# -'6AACB# Ana!ytic (i!!s(i!!# App!ication*+ective# 1',6

Principle of marketing Chapter 10 MCQ

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