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- 1. Multiple Choice
Pricing decisions are only made for new products entering the market.
True
False
- 2. Multiple Choice
If a new product is of high quality, it is likely to have...
a high price
a low price
a price similar to that of competitors' products
no price - it will be given away in a BOGOF promotion
- 3. Multiple Choice
Which of the following is NOT a reason for a business to adopt a new pricing strategy?
it is trying to enter a new market
it wants to make sure all its costs are covered
it wants to decrease its profits
it is trying to increase its market share
- 4. Multiple Choice
If the product is branded, it will likely be aimed at a particular market segment.
True
False
- 5. Multiple Choice
A shoe manufacturer produces 30,000 pairs of shoes at a total cost of $75,000. What is the cost of producing one pair of shoes?
$0.40
$4.00
$0.25
$2.50
- 6. Multiple Choice
An ice cream manufacturer produces vanilla ice cream at a cost of $0.90 per litre. Assuming the manufacturer uses a markup of 200%, what is the the selling price per litre?
$18.00
$1.80
$270
$2.70
- 7. Multiple Choice
Which of the following is NOT a limitation of cost-plus pricing?
Each product earns a profit for the business
The business could lose customers if the selling price is higher than competitors' prices
There is no incentive for the business to become more efficient
An overall profit will only be made if enough units are sold
- 8. Multiple Choice
Cost-plus pricing estimates how many of a product will be sold, calculates a total cost, then adds a mark-up to arrive at the selling price of the product.
True
False
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