Mktg Quiz: Chapter 13

How much profit did the online store make on the sale of this printer?

$102

Assuming that the store's cost for the printer and the USB cord was 50% of its list price and that shipping was set at its cost, what were the seller's costs for this transaction?

$172

What was your final price for the printer?

$244

Inelastic Demand

1.25 million Macbooks 10 million iPhones

If the online store charged $209 for the printer, what percentage discount would you have received from MSRP?

30%

Suppose you are the owner of a picture frame shop and you wish to identify how many pictures you must sell to cover your fixed cost at a given price. Let's assume demand for your pictures is strong, so the average price customers are willing to pay for each picture is $120. Also, suppose your fixed cost (FC) is $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture is now $40 (labor, glass, frame, and matting). Your break-even quantity (BEP) is

400 pictures

Elastic Demand

6.5 million Nanos 1.6 million Macbook Air Units

Sales Revenue

Black Friday Nike Golf

Unit Volume

Florida Summer iPhone

Which of the following statements about price elasticity of demand is most accurate?

Items requiring large cash outlays relative to a consumer's disposable income are price elastic.

Survival

Linen's & Things Country Club

Market Share

Operating Systems U.S. Airways

Which of the following statements about profit objectives is most accurate?

Profit objectives are measured in terms of return on investment or return on assets.

Profit

Return on Investment Return on Assets

Social Responsibility

Special Drug Pricing Hybrid Permits

As Red Baron lowered the price of its frozen cheese pizzas from $8 to $6, beginning in Year 2, the quantity sold (demanded) increased from 2 million (Q1) to 3 million (Q2) units per year. This is an example of ____________ and it assumes that other factors (consumer tastes, price and availability of substitutes, and consumers' incomes) remain unchanged

a movement along a demand curve

Because quantity demanded typically decreases as price increases, price elasticity of demand is usually ____________. However, for the sake of simplicity and by convention, elasticity figures are shown as _______ numbers.

a negative number; positive

The former Soviet republic of Turkmenistan is located in Central Asia and is one of the last countries on the planet to gain Internet access. The only Internet service provider for the entire country is Turkmen Telecom. As a result, there is no need for price competition, promotion, or product differentiation because Turkmen Telecom operates in __________ market type.

a pure monopoly

If advertising causes more people to want Red Baron frozen cheese pizzas, demand will increase. Now the initial demand curve no longer represents the demand. Instead, the new demand curve represents the new demand for Red Baron frozen cheese pizzas. Economists call this proportional demand.

a shift in the demand curve.

All of the following are examples of a price except

a tax

A __________ is most often used to study the impact on profits of changes in price, fixed costs, and variable costs.

break-even chart

Break-even analysis is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. The ____________ is the quantity at which total revenue and total cost are equal.

break-even point (BEP)

Several years ago, Newsweek ran a pricing experiment that involved setting different newsstand prices for its magazine in different cities and recording the number of units sold. After adjusting for factors such as the population of the different cities, Newsweek could plot these prices and units sold in a graph called a

demand curve

For most products, a decrease in price will _______ value.

increase

Three different objectives relate to a firm's profit. One objective is __________, in which companies give up immediate profit by developing quality products to penetrate competitive markets over the long term.

managing for long-run profits

In a monopolistic competitive market,

many sellers compete on both price and nonprice factors.

Which of the following is not a pricing constraint?

social responsibility impact the product has on society

From a marketing viewpoint, price is __________ exchanged for the ownership or use of a product or service.

the money or other considerations (including other products and services)

Which of the following would be an example of a variable cost for a publication like SHAPE magazine that is targeted to young women seeking a healthier lifestyle?

the paper and ink for printing the magazine

Price elasticity of demand refers to

the percentage change in quantity demanded relative to the percentage change in price.

Break-even point refers to

the quantity at which total revenue and total cost are equal.

The sum of fixed cost and variable cost represents

total cost

A break-even chart is a graphic representation of the break-even analysis that shows when ___________________ intersect, to identify profit or loss for a given quantity sold.

total revenue and total cost