If Roberts PLC finds that the average total cost of its radar detectors and the marginal
cost of its radar detectors are both £85, then:
Detailed Answer
D
2
To determine the breakeven point in units, one divides fixed costs by:
Detailed Answer
C
3
Marketers are in a better position to establish prices when:
Detailed Answer
B
4
When Sharp first introduced its line of reverse notation calculators, it set the price quite
high; it has lowered the price as competitors have entered the market. The pricing strategy
used by Sharp is called:
Detailed Answer
C
5
Which of the following would be used in setting the price of a new product if
considerable competition is expected?
Detailed Answer
B
6
A product is a price leader when:
Detailed Answer
C
7
Which pricing strategy involves a company fixing a low price that high-cost
competitors cannot match?
Detailed Answer
A
8
When an organisation sets a limited number of prices for selected groups of
merchandise, this idea is commonly referred to as
Detailed Answer
B
9
For custom-made equipment and commercial construction projects, which pricing
method is most likely to be used?
Detailed Answer
D
10
A retailer of Real Dry deodorant prices a can at £2.00; it cost the retailer £1.40. What is
the, markup as a percentage of the selling price?