1. _____ use complex mathematical software to profitably fill unused capacity.

2. When the Apple iPhone 3G was introduced the Apple iTunes web site also began selling small program 'apps' written by third parties that could be run on the iPhone. One interesting app was the 'I Am Rich' application. For a price of $1,000 you could buy this app that did nothing but display a red gem on the iPhone’s screen. The description of the app stated that this red icon would remind you (and others you show it to) 'that you were rich enough to afford this.' Six of the applications were sold before Apple Inc. removed the app from iTunes. At the $1,000 price the author of the app was using _____ pricing as part of his marketing approach.

3. Although many factors can influence price, the primary determinants are:

4. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. When a tourist shop began selling Pure Hawaiian Air, it charged $5 per bottle and could not keep up with the demand. It has since raised the price to $7. Now the shop is still selling all the bottles of Pure Hawaiian Air it carries, but the owner is not forced to reorder on a daily basis. The $7 price is probably a(n):

5. When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,600, demand doubled from 4 units sold per month to 8 units per month. However, total revenue dropped. This is an example of:

6. _____ is the extra revenue associated with selling an additional unit of output.

7. The greater the number of different uses for a product, the more _____ demand tends to be.

8. When Insight Research Associates quotes a marketing research project, management will first estimate the cost to conduct the research and produce and deliver the final client report. The next step in determining the price is to add 30% to that cost estimate. This becomes the price estimate given to the potential research client. This suggests that Insight Research Associates uses a(n) _____ pricing objective.

9. Which of the following statements about yield management systems (YMS) is true?

10. The price of the good or service is a key decision for a marketer because it most significantly and directly affects the product's:

11. Manufacturers can do all of the following to regain some control over the price their products are sold for at the retail level EXCEPT:

12. Monthly output at Leisure-Time, Inc. changed from 12 to 13 prefabricated gazebos, and the total costs changed from $9,000 to $10,500. What is the marginal cost for this company?

13. Peggy’s Twist Shack sells soft-serve ice cream. Peggy graphed the demand per week for vanilla ice cream cones. The graph indicates a demand schedule that slopes downward and to the right. This graph indicates that the quantity of vanilla ice cream cones demanded increases as:

14. Patrick owns Liberty Tax and Bookkeeping Services. The monthly mortgage payment Patrick makes on his small office building and the annual cost of his business license are all examples of _____ costs.

15. Central Bark is a dog resort where pets are pampered. Which of the following is the BEST example of one of its fixed costs?

16. Total variable costs divided by quantity of output equals:

17. Refer to Tesla Motors. What is the fixed cost contribution for the Roadster given average variable costs of $50,500?

18. While the sales of the Apple iPhone have been great from the beginning, when Apple released its iPhone 3G and cut the price of the iPhone for $399 to $199, sales exploded. One million iPhones sold the first weekend. Demand for the iPhone appears to be:

19. Consumers’ responsiveness or sensitivity to changes in prices is known as:

20. Why are marketing managers finding it more difficult to set prices in today's environment?

21. What does the lack of a price-matching guarantee tend to signal to the target market?

22. Although many factors determine the prices charged by Cecilia Villaveces Cakes, the two primary determinants are:

23. _____ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same.

24. For a nail salon, the costs associated with the purchase of nail polish and other products like nail polish remover, sterilized equipment, laundry service for the towels, and the beverages given to customers, are all examples of _____ costs.

25. At Walmart, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The items, which were sold together, retailed at $28.50, but were marked down to $19.99. The retailer sold one at the $28.50 price and five at the $19.99. The retailer's revenue is: