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|Question Joe Johnson cast his vote for Tom Yancy, a candidate for state representative. Johnson voted for Yancy because he believed the |

|candidate would represent his interests in the state legislature. Patty O'Rourke hired an attorney to represent her in a court case |

|involving an auto accident. The attorney charged O'Rourke a fee for his services. Terry Thomas needed a haircut—the local stylist charged |

|him $12 for her services. Aaron Mathison mowed his neighbor's lawn; in exchange, the neighbor roto-tilled Mathison's garden. Johnson's vote,|

|the attorney fees paid by O'Rourke, the $12 charged by the hair stylist, and exchange of lawn mowing for garden tilling are examples of: |

|Answer |[pic] |

| |  price. |

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| |  barter. |

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| |  fee setting. |

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| |  unfair market exchanges. |

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| |  product fares. |

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|Question On an episode of the television show Friends, Phoebe traded some maternity clothes for tickets to a Sting concert. This trade was: |

|Answer |[pic] |

| |  an example of barter because it involved the exchange of goods. |

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| |  an example of a countertrade because it took place in the business market. |

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| |  an example of a value exchange. |

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| |  an incentive because it created value where there was none. |

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| |  an example of nonprice competition. |

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|Question The Society of American Florists (SAF) is an association that provides marketing, management, accounting, and legal services for |

|the entire floral industry. Members in the for-profit association pay annual dues. Within the last two years, SAF created and is maintaining|

|an e-marketplace where members with merchandise to sell use the Internet to find members who need their merchandise. In addition, SAF has |

|created a number of instructional programs that are free to members. SAF has provided these additional services without raising its annual |

|dues. SAF's recent strategy is an example of: |

|Answer | |

| |  socially responsible pricing. |

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| |  a value exchange. |

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| |[pic] |

| |  value-pricing. |

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| |  website marketing. |

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| |  a price/quality exchange. |

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|Question If a company's total annual revenues are $270,000, and its total cost for the same year was $180,000, then its profit would be |

|$90,000. $270,000 minus $180,000 equals $90,000 is its: |

|Answer | |

| |  break-even in dollars. |

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| |[pic] |

| |  profit equation. |

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| |  price elasticity. |

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| |  break-even in quantity. |

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| |  marginal analysis. |

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|Question An analysis of a prospective product shows it is expected to grow at least by 10 percent each year over the next 5 years, and then |

|enter the maturity phase of its product life cycle. This type of analysis would provide useful information in which stage of the |

|price-setting process? |

|Answer |[pic] |

| |  identifying pricing constraints and objectives |

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| |  determining cost, volume, and profit relationships |

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| |  estimating demand and revenue |

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| |  select an appropriate (approximate) price lining strategy |

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| |  make special adjustments to list or quoted price |

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|  Question Hallmark was the official supplier of flowers at the Winter Olympics. Each Olympic winner was being presented with a special |

|bouquet of roses designed to resemble the Olympic torch. Consumers can buy a smaller version of this same bouquet at the Hallmark website |

|for $74.95. The arrangement contains two dozen yellow roses. Which of the following may have been a pricing constraint when setting this |

|price? |

|Answer |[pic] |

| |  Demand for roses is high in February when the Olympics is taking place. |

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| |  As a product category, rose bouquets are in the introduction stage. |

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| |  Hallmark sells a lot of roses. |

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| |  All of Hallmark's competitors can sell rose bouquets. |

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| |  None of the above is an example of a pricing constraint that may have influenced the price Hallmark |

| |charged for its Olympic bouquets. |

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|Question Turkmenistan is a Central Asian country that used to be part of the Soviet Republic. The only Internet service provider (ISP) in |

|the country is Turkmen Telecom, a government-operated facility. Turkmen Telecom is an example of __________ because there is no competition |

|to determine what pricing strategy it uses. |

|Answer | |

| |  pure competition |

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| |  an oligopololy |

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| |  oligopolistic competition |

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| |  monopolistic competition |

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| |  a pure monopoly |

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|Question If competitive market circumstances are such that there are a lot of sellers who use some price competition, some product |

|differentiation, and the purpose of advertising is to differentiate the firm's products from competitors, then __________ must exist in the |

|industry. |

|Answer | |

| |  a pure monopoly |

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| |  an oligopoly |

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| |[pic] |

| |  monopolistic competition |

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| |  pure competition |

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| |  oligopolistic competition |

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|Question One of the largest and most successful companies in the pharmaceutical industry is Pfizer. In 2002, Pfizer offered low-income |

|senior citizens many of its most widely used prescriptions for $15 each a month. This low $15 price was selected in order for Pfizer to |

|achieve what kind of pricing objective? |

|Answer | |

| |  market share |

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| |  survival |

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| |[pic] |

| |  social responsibility |

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| |  maximizing current profit |

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| |  none of the above |

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|Question Which of the following would be the BEST example of a fixed cost for a university bookstore? |

|Answer | |

| |  its inventory of principles of marketing texts |

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| |  overtime for its employees at the beginning of each semester |

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| |  shoplifting costs |

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| |[pic] |

| |  the salary of the bookstore manager |

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| |  poster board and markers used for making signs |

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