5.- The floor for long-run price is called __________.

a).- profitability

b).- parquet

c).- long run average cost

d).- market skimming

6.- Sometimes firms set prices below cost, in order to generate enough cash to stay in

business in the short run. This pricing objective is called __________.

a).- survival

b).- market share leadership

c).- customer quality leadership

d).- current profit maximization

7.- What is the term we use to describe markets in which a large change in price

results in a small change in the quantity demanded?

a).- inelastic

b).- spastic

c).- elastic

d).- none of the above

8.- Consider cost-based versus value-based pricing. Which is more closely related to

the selling concept?

a).- Cost-based.

b).- Value-based.

c).- both are closely related.

d).- neither is closely related.

9.- Consumers usually perceive higher-priced products as ________.

a).- not worth the price

b).- the governments fault

c).- being of higher quality

d).- none of the above

10.- Setting a low price for a new product in order to attract a large number of buyers

and a large market share, is called __________ pricing.

a).- programmed marketing

b).- market penetration

c).- predatory

d).- market skimming