Chapter 13

Question 1

the amount of money exchanged for products and services

Answer 1

price

Question 2

practice of exchanging products/services for other products/services

Answer 2

barter

Question 3

price=list price - allowances + extra fees

Answer 3

price equation

Question 4

ratio of perceived benefits to price

Answer 4

value

Question 5

the practice of increasing product and service benefits while maintaining or decreasing price

Answer 5

value pricing

Question 6

profit=total revenue - total cost

Answer 6

profit equation

Answer 7

six steps in setting price

Answer 8

pricing objectives

Question 9

sales-expenses

Answer 9

profit

Question 10

how much are you actually selling in the market

Answer 10

sales revenue

Question 11

what percent of the market are you vs. your competition

Answer 11

market share

Question 12

how many units are we selling

Answer 12

unit volume

Question 13

many sellers who follow the market price for identical, commodity products

Answer 13

pure competition

Question 14

many sellers who compete of nonprice factors

Answer 14

monopolistic competition

Question 15

few sellers who are sensitive to each other’s prices

Answer 15

oligopoly

Question 16

one seller who sets the price for a unique product

Answer 16

pure monolopy

Question 17

a graph that related the quantity sold and price. showing the maximum number of units that will be sold at a given price

Answer 17

demand curve

Question 18

factors that determine consumers’ willingness and ability to pay for products and services

Answer 18

demand factors

Question 19

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

Answer 19

price elasticity of demand

Question 20

a slight decrease in price results in a relatively large increase in demand or unit

Answer 20

elastic demand

Question 21

slight increase or decrease in price will not affect demand

Answer 21

inelastic demand

Question 22

sales

Answer 22

total revenue

Question 23

the expenses of the firm that are stable and do not change with the quantity of a produce

Answer 23

fixed cost

Question 24

sum of the expenses of the firm that vary directly with the quantity of a product

Answer 24

variable cost

Question 25

variable cost expressed on a per unit basis for a product

Answer 25

unit variable cost

Question 26

the difference between unit selling price and unit variable cost

Answer 26

contribution margin

Question 27

a technique that analyzes total revenue and total cost to determine profitability at various quantities

Answer 27

break-even analysis

Question 28

shows the quantity sold needed to cover costs

Answer 28

break-even point

Question 29

a graphic of the break even analysis

Answer 29

break-even chart