Marketing 4.03 Review Quiz

Erica wants to buy Marco’s used iPod. He is asking her to pay him $100 for it. $100 is the iPod’s

• cost of goods.

• selling price.

• cash flow.

• profit

A business that sets its prices lower than those of competitors will not make a profit unless it also

• reduces its inventory.

• increases promotion.

• controls its costs and expenses.

• enlarges its staff.

Why is obtaining, maintaining, or increasing market share important to a business?

• A large market share ensures large profits.

• Customers are interested in a firm’s market share.

• Market share serves as a measure of the success of the business.

• Market share must constantly increase for the business to succeed.

Why is it important for businesses to recover their costs?

• So that they can pay lower taxes

• So that they can stay in business

• So that they can maximize their losses

• So that they can avoid government regulation

What happens over time when demand for a product goes up?

• The selling price goes down.

• Customers can’t afford to buy it.

• Producers make more of it.

• The supply decreases.

The national economy is always changing. These ups and downs in economic activity are known as

• growth periods.

• business cycles.

• profit cycles.

• recessions

What kind of competitive market is characterized by a great many buyers and sellers of nearly identical products and marketers who have little control over pricing?

• Monopolistic competition

• Monopoly

• Pure competition

• Oligopoly

Which of the following is a true statement:

• Only certain types of products have selling prices.

• Selling prices are easy for businesses to determine.

• Selling prices for products always remain the same over time.

• There are many kinds of selling prices for goods and services.

In which of the following forms of competition are no substitutes readily available?

• Pure competition

• Monopolistic competition

• Oligopoly

• Pure monopoly

Jack’s General Store has advertised a big sale on toasters. When Wendy goes to the store to buy a toaster, the salesperson tells her they are all sold out and offers to sell her a higher priced toaster oven. This is an example of an illegal practice known as

• bait-and-switch advertising.

• unit pricing.

• price fixing.

• price discrimination.