SOLVED

21) Which of the following statements about the break-even point is true? A) It is used to determine how many more units need to be sold to increase market share by a specific amount. B) It is a technique used to calculate fixed costs. C) It determines the amount of retained earnings a company will have during an accounting period. D) It is a technique marketers use to examine the relationship between supply and demand. E) It is calculated using contribution per unit costs and total fixed costs. 22) The break-even point is the point at which ________. A) the total revenue and total costs lines intersect B) demand equals supply C) the production of one more unit will not increase profit D) the company can pay all of its long-term debt E) a firm’s profit goal is reached 23) To determine the break-even point, a firm needs to first do which of the following? A) determine what percentage of the market it wants B) determine the point at which supply equals demand C) calculate the contribution per unit D) conduct an environmental audit E) determine total market share 24) ________ lets marketers look at cost and demand at the same time and identify the output and the price that will generate the maximum profit. A) Break-even analysis B) SWOT analysis C) Marginal analysis D) Competitive analysis E) Supply-demand analysis 25) Which of the following statements about marginal analysis is true? A) Marginal analysis is typically a straightforward procedure to apply in real-life situations. B) An important factor in marginal analysis is predicting demand, which is an exact science. C) Marginal revenue is also the demand curve, so it represents the amount customers will buy at different prices. D) Profit is maximized at the point at which marginal cost is exactly equal to marginal revenue. E) The cost of producing a unit beyond the point when marginal cost equals marginal revenue is much less than the revenue from the sale of that unit. 26) Which of the following is an external influence that affects pricing decisions? A) the salaries of production management B) competition C) the salaries of finance management D) overall pricing objectives E) the company’s overall marketing strategy 27) When setting prices, a company must consider factors in its pricing environment. ________ such as the business cycle, economic growth, and consumer confidence can have a significant impact on the firm’s pricing strategies. A) Consumer trends B) Economic trends C) Competitors’ responses D) Regulations E) Market structures 28) In a market with ________, there are many sellers, each offering a slightly different product. Firms can differentiate products and focus on nonprice competition. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) socialism 29) In a market with ________, the market consists of many buyers and a few sellers who are likely to have similar pricing. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) socialism 30) The most common cost-based approach to pricing is ________. A) demand-based pricing B) psychological pricing C) yield management pricing D) cost-plus pricing E) cost-minus pricing