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BUSM 2010 Final Exam – Questions & Accurate Answers
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BUSM 2010 Final Exam – Questions & Accurate Answers
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BUSM 2010 Final Exam – Questions & AccurateAnswers
Product Life Cycle Right Ans - the stages a new product goes through in the
marketplace: introduction, growth, maturity, and decline
What product had a long introductory period? Right Ans - Electric Cars
What car company plans to be all electric or hybrid by 2019? Right Ans -
Volvo
Long run profits Right Ans - companies are putting majority of revenue
back into the company
Current profits Right Ans - airline seats, apartments
target return pricing Right Ans - Start with a rate of return objective, then
arrange your price structure so as to achieve these target rates of return.
Survival Pricing Right Ans - have to cover variable cost
Social Responsibility pricing Right Ans - taking societal considerations into
account
example: senior citizen discount
competitive reference point Right Ans - above, at, below
pricing constraints Right Ans - demand, availability of close substitutes,
single product vs product line, cost of producing/marketing
Single Product vs Product line Right Ans - EX: Apple came out with 3 new
iphones, hoping to reach different economic target markets
Cost of producing and marketing Right Ans - have to cover fixed and
variable costs first and also try to make a profit
Pure Competition Characteristics Right Ans - extent of price competition =
almost none
, extent of product differentiation = none
extent of advertising = little
ex: identical commodity products
Oligopoly Characteristics Right Ans - extent of price competition = some
extent of product differentiation = various, depends on industry
extent of advertising = some
Few sellers who are sensitive to each others prices
Right Ans -
pure monopoly Right Ans - price competition = none
differentiation = none
advertising = little
ex: xcel energy, BUT now they have to get approval before raising prices
"For Prescription Drug Makers, Price Increases Drive Revenues" Right Ans
- pure monopoly
one seller who sets price for unique product
drug makers have high pricing power, especially on creation of new drugs
because of patents
monopolistic competition Right Ans - price competition = some
differentiation = some
advertising = much
may sellers who compete on non price factors
Factors of Demand Curve Right Ans - -consumer tastes
-price of complementary/substitute products
-consumer income
Total Revenue (TR) Right Ans - the total money received from the sale of a
product
price x quantity sold
Marginal revenue (MR) Right Ans - the change in total revenue that results
from producing and marketing one additional unit of a product
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