Question 1

​A cost that changes with the level of output is called a(n)_____ cost.
A)liquidity
B)​variable
C)​fixed
D)indirect

Accepted Answer

A variable cost is a cost that changes with the level of output. For example, the cost of raw materials increases as production increases, while the cost of electricity to run machines increases as more machines are used. Therefore, option B is the best choice.

Question 2

Randy's Apparels Inc.plans to expand its customer base and product line.It introduces a new line of designer wear that are very expensive and exclusively available at Randy's.It emphasizes the high quality and exclusivityof this new line of products in its advertisements.In this case,Randy's Apparels has used _____ for the new line of products.​
A)predatory pricing
B)​leader pricing
C)​bait pricing
D)prestige pricing

Accepted Answer

Randy's Apparels is emphasizing the high quality and exclusivity of its new line of designer wear, which indicates that they are using prestige pricing. This strategy involves setting prices higher than competitors to create a perception of high quality and exclusivity.

Question 3

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the _____ effect associated with the price-quality relationship.
A)durability
B)​allocative
C)​prestige
D)hedonistic

Accepted Answer

The answer of When Jerry took delivery of his brand...

Question 4

_____ costs do not change as output is increased or decreased.​
A)Marginal
B)​Variable
C)​Fixed
D)Total

Accepted Answer

Fixed costs do not change with changes in output, whereas variable costs change with changes in output. Marginal costs refer to the cost of producing an additional unit of output, and total costs are the sum of fixed and variable costs.

Quiz 20: Pricing Concepts

A cost that changes with the level of output is called a(n) _____ cost.

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the _____ effect associated with the price-quality relationship.

_____ costs do not change as output is increased or decreased.

Quiz 20: Pricing Concepts

​A cost that changes with the level of output is called a(n) _____ cost.

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the _____ effect associated with the price-quality relationship.

_____ costs do not change as output is increased or decreased.​

A cost that changes with the level of output is called a(n) _____ cost.

_____ costs do not change as output is increased or decreased.