maneco

Question 1

The additional cost incurred by producing and selling one more unit.

Answer 1

MARGINAL COST (MC)

Question 2

Setting a single price for a single product of a single firm is

Answer 2

“monopoly” model of pricing

Question 3

• This refers to lower cost of producing two or more products jointly.
  If the cost of producing two products jointly is less than the cost of producing those two products separately-

Answer 3

ECONOMIES OF SCOPE

Question 4

|Ed| =1 the demand curve

Answer 4

unitary elastic

Question 5

THE PROCESS OF DETERMINING THE PRESENT VALUE OF THE AMOUNT TO BE RECEIVED IN THE FUTURE.

Answer 5

DISCOUNTING

Question 6

Supply curves describe the behavior of a group of sellers and tell how much you will be sold at a given price.
The supply curve is like a demand curve; we arrange sellers by the prices at which they are willing to sell. Every person willing to sell at or below the given price “supplies” product to the market.

Answer 6

SHIFTS IN SUPPLY

Question 7

Additional revenue gained from selling one more unit.

Answer 7

MARGINAL REVENUE (MR)

Question 8

USES TO KNOW THE FUTURE VALUE OF A PRESENT AMOUNT.

Answer 8

compounding

Question 9

Used to determine the volume required to offset a change in price. It can even tell you how many unit sales that you can lose before a price increase become unprofitable. When combined with information about elasticity of demand, the analysis will give you a quick answer to the changing of price makes sense.

Answer 9

STAY-EVEN ANALYSIS

Question 10

types of economies of scale

Answer 10

technical
specialization
bulk buying
marketing
risk bearing
container principle
financial
external

Question 11

Movement along the demand curve.

Answer 11

SHIFTS IN DEMAND

Question 12

The Quantity Being Produced goes up. Through marginal cost, the manufacturer can determine how to allocate resources among the production units and maximize output.

Answer 12

Increasing Marginal Cost

Question 13

something that affects demand that a company cannot control.
Income, weather, interest rates, and prices of substitute and complementary products owned by other companies.

Answer 13

Uncontrollable Factor

Question 14

|Ed| <1 the demand curve

Answer 14

inelastic

Question 15

THE PRICE AT WHICH QUANTITY SUPPLIED EQUALS QUANTITY DEMANDED

Answer 15

MARKET EQUILIBRIUM

Question 16

what the producer or seller receives, and is what a consumer or buyer is willing to pay for a unit of a goods or service

Answer 16

Price

Question 17

Tells how much a single consumer or a group of consumers will consume as a function of a price. It shows the relationship between the price and the number of purchases made by this group of consumers

Answer 17

AGGREGATE OR MARKET DEMAND CURVE

Question 18

demand measures the change in demand arising from changes in income.

Answer 18

INCOME ELASTICITY

Question 19

the higher the price,
the higher the quantity supplied.

Answer 19

Supply curves slope upward

Question 20

Is a method to set the price of the goods or services based on the cost. Under this, we add a percentage of the total cost to the cost itself to get the selling price of the product.

Answer 20

COST-BASED PRICING(or mark-up pricing)

Question 22

characteristic of many processes. As you produce more, you learn from the experience, and this experience helps you produce future units at a lower cost. Learning carves mean that current production lowers future costs, which has important strategic consequences.

Answer 22

LEARNING CURVES

Question 23

An investment in a particular area increases, the rate of profit for the investment, after a certain point, cannot continue to increase if other variables remain constant.

Answer 23

LAW OF DIMINISHING RETURNS

Question 24

Consumers demand ( purchase ) more as the price falls

Answer 24

FIRST LAW OF DEMAND

Question 25

something that affects demand that a company can control.
Price, advertising, warranties, product quality,distribution speed, service quality, and prices of substitute or complementary products also owned by the company.

Answer 25

Controllable Factor

Question 26

made using break-even prices rather than quantities

Answer 26

Shut –down decisions

Question 27

you are vulnerable to post-investment hold-up

Answer 27

you incur sunk costs

Question 28

about the producers who make and sell, also states that a higher price leads to a higher quantity supplied, and that a lower price leads to lower quantity supplied.

Answer 28

law of supply

Question 29

describes buyer behavior

Answer 29

MARKET DEMAND

Question 31

The total number of units that will be purchased by a group of consumers at a given price

Answer 31

AGGREGATE DEMAND

Question 32

average avoidable cost per unit

Answer 32

break-even price

Question 33

measures how sensitive the demand of a product is over a shift of a corresponding product price.

Answer 33

CROSS-PRICE ELASTICITY

Question 34

If the price of one product increases, the demand for the complementary product decreases

Answer 34

CROSS-PRICE ELASTICITY OF COMPLEMENTARY PRODUCTS

Question 35

consumers who buy, also states that a higher price leads to a lower quantity demanded, and that a lower price leads to higher quantity demanded

Answer 35

law of demand

Question 36

|Ed| >1 the demand curve

Answer 36

elastic

Question 37

Q= F/(P-MC

Answer 37

BREAK EVEN QUANTITY

Question 38

the investment earns more than the cost of capital

Answer 38

NPV NET PRESENT VALUE

Question 39

product, geographic, and time dimension

Answer 39

market

Question 40

types of cost based pricing

Answer 40

cost plus pricing
mark up pricing
break even cost pricing
target profit pricing

Question 41

A term refers to situation in which as your business grows, you are able to lower your cost per unit.

Answer 41

ECONOMIES OF SCALE

Question 42

describes seller behavior in a competitive market.

Answer 42

MARKET SUPPLY