Chapter 15—Pricing Key
1. Being the low price seller in the market is
2. Low quality is essentially the same as
3. The high quality segment of the market may also be the same as the
4. The Pricing Chips suggests that consumers choose between substitutes based on
5. According to the book, the most important strategy to a firm is its
6. According to theory, where is the right price determined?
7. More and more firms use ____ to determine prices
8. The area below the demand curve but above the market price line is
9. Firms try to capture consumer surplus by
10. If a firm can charge different prices for each consumer it can practice
11. Given demand, the price is found where
12. Commodity markets resemble
13. Value pricing reflects
14. Price should be
15. Pricing is made difficult by
16. Technology has allowing pricing to become
17. By personalizing price, firms are attempting to
18. In order to earn an economic profit, a firm needs to charge a price in excess of
19. If each customer is sold a product at a different price, then the firm is practicing
20. To practice second-degree price discrimination
21. In a product line extension
22. If a firm is unable to distinguish different customer groups
24. The use of “anytime minutes” and “after-hour minutes” suggests that price is being influenced by
25. If price is determined as a multiple of costs, then a firm is using
26. Cost plus pricing is
27. Markup pricing is the same as
28. When a price is presented in context to another, a firm is
29. $2.98 is an example of
30. Pricing can be
31. When pricing is used to limit entry, it is often described as
32. When firms price based on the packaging of several products, they are
33. The basic difference between mixed and pure bundling is that
34. Mixed bundling may result in
35. Cell phone companies often include an activation fee with the purchase of their service. This is an example
of
36. Often the pricing of one product can adversely affect the revenue earned from another produced by the same
37. When the pricing of one product produced by a firm adversely affects the revenue earned by another
product of the same firm, the second product has been
38. When a firm buys a product from another firm in the same company, it is charged
39. Grocery stores often replace
40. If the pricing of one firm is partially influenced by what it thinks another firm will do, the two firms are
41. Interdependence in pricing may leading to
42. If a firm can segment its market, and the parts cannot communicate among themselves, then
43. Firms spend significant amounts of time and resources developing pricing strategies.
44. Firms want to capture consumer surplus.
45. Firms that price discriminate cannot capture consumer surplus.
46. “Value pricing” stresses the importance of product differentiation.
47. Perfect price discrimination is the same thing as predatory pricing.
48. To price discriminate, firms must face markets with different elasticities.
49. Product-line extension is a form of price discrimination.
50. The price a firm charges may be related to the time of the day when its product is consumed.
51. Prices that firms charge should take into account the elasticity of demand.
52. Peak-load pricing is often referred to as full cost pricing.
53. Predatory pricing is a form of barrier to entry.
54. To be effective, pure bundling requires firms to be able to separate consumers into separate markets.
55. Bundling is used to raise total revenue.
56. Transfer pricing is used by moving companies.
57. If I worry that if I cut my price, you will cut yours, then I am acting as if we are interdependent.