Marketing 120 Mid-Term Exam #3

Instructor: Dr. H. Holmes

Instructions: Multiple Choice Questions. Select the best answer and mark on your scantron.

1. Which of the following statements about Place is NOT true?
A. Most consumer products move from producer to middlemen to final customer.
B. A series of participants in the flow of goods and services from producer to final customer is called a channel of distribution.
C. There is always one Place arrangement that is "best" for a product.
D. Middlemen develop to adjust discrepancies in quantity and assortment.
E. All of the above are true.

2. Which of the following statements about Place is true?
A. Most consumer products and most business products are sold to middlemen who then sell them to final customers.
B. Place decisions are usually harder to change than other marketing mix decisions.
C. There is always one Place arrangement that is "best" for a product.
D. A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network.
E. None of the above is true.

3. Which of the following statements about direct channel systems is NOT true?
A. There is no reliance on independent middlemen whose objectives may be different from the producer's objectives.
B. A product's marketing mix is harder to adjust.
C. The producer can be more aware of changes in customer attitudes.
D. Direct channels are more typical with business products than with consumer products.
E. All of the above are true.

4. Which of the following is a function that a middleman is likely to provide for customers?
A. reduce inventory costs
B. regroup products
C. provide delivery
D. grant credit
E. All of the above are functions provided for customers.

5. Which of the following best illustrates "discrepancies of quantity"?
A. Michelin makes tires, but most consumers also want a large selection of car-care services.
B. Some stores sell large quantities of Michelin tires, but only small quantities of tires made by other companies.
C. There are about 281 million consumers in the U.S. but only a small portion buy tires in any given year.
D. Four firms make over 90 percent of all the tires sold in the United States.
E. Michelin made millions of tires last year--but most customers bought only one set.

6. "Discrepancies of quantity" means:
A. some consumers buy more products than others.
B. there are more consumers than producers.
C. some manufacturers can produce more products than others.
D. the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users.
E. that demand is greater than what a company can supply.

7. "Discrepancies of assortment" means:
A. some producers can produce more products than others.
B. some consumers buy more products than others.
C. consumers want more output than producers can make.
D. there are more producers than wholesalers.
E. the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.

8. Which of the following is NOT one of the "regrouping activities?"
A. Assorting
B. Ranking
C. Sorting
D. Bulk-breaking
E. Accumulating

9. Small farmers in the mountains of Colombia pick coffee beans by hand, obtaining only a bucket a day. Then they sell them to buyers who put the beans in large bags to be shipped to processors. This regrouping activity is called:
A. Assorting
B. Wholesaling
C. Bulk-breaking
D. Sorting
E. Accumulating

10. International Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in Germany, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:
A. assorting.
B. wholesaling.
C. accumulating.
D. bulk-breaking.
E. sorting.

11. The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:
A. assorting.
B. bulk-breaking.
C. wholesaling.
D. accumulating.
E. sorting.

12. Channels of distribution:
A. that include middlemen result in higher distribution costs than for channels without middlemen.
B. should be designed to increase discrepancies of quantity between producers and consumers.
C. usually do not involve conflicts as long as each channel member has profit as a goal.
D. usually require longer-term planning than other market mix elements because channel decisions are more difficult to change quickly.
E. none of the above.

13. Traditional channels of distribution
A. do not perform bulk-breaking activities.
B. are usually preferred to other distribution arrangements.
C. are easier to control than corporate channel systems.
D. may involve little or no cooperation among channel members.
E. are usually controlled through strong legal contracts.

14. The role of "channel captain":
A. should be taken by producers because they have more power.
B. is to force other channel members to accept the channel captain's plan.
C. should be taken by retailers because they are closer to consumers.
D. may not be necessary if the channel members are satisfied with the "status-quo."
E. is to help a channel system compete more effectively with other channel systems.

15. A "channel captain"
A. might be any member of the channel (that is, at any level in the channel)
B. views the members of the channel as a unit.
C. should help to make the channel more efficient by reducing conflict.
D. all of the above.
E. none of the above.

16. A large food retailer acquiring a cheese factory is an example of:
A. dual distribution.
B. vertical integration.
C. a tying contract.
D. horizontal integration.
E. internal expansion.

17. A computer manufacturer runs training programs for its "cooperating" retailers' salespeople, as well as providing newspaper advertising layouts, point-of-purchase materials, and sales manuals. This is an example of:
A. an administered channel system.
B. a contractual channel system.
C. a traditional channel system
D. a vertically integrated corporate channel system.
E. a franchising system.

18. A channel system in which the various members informally agree to cooperate with each other is called a(an) ______________ system.
A. contractual channel
B. dual distribution
C. traditional channel
D. administered channel
E. franchising

19. When planning channels of distribution, a marketing manager should know that
A. vertically integrated systems are seldom used--because of the difficulty of maintaining control.
B. a contractual system offers both flexibility and stability for its members.
C. the disadvantage of a corporate channel system is reduced control over distribution activities.
D. all of the above.
E. none of the above.

20. Middlemen are needed MOST when the desired degree of market exposure is:
A. selective.
B. intensive.
C. exclusive.
D. administered.
E. none of the above.

21. "Intensive distribution" means selling through:
A. only one channel of distribution.
B. all responsible and suitable retailers or wholesalers.
C. only one middleman in a particular geographic area.
D. only those middlemen who give the product special attention.
E. all retail outlets.

22. "Selective distribution" means selling through:
A. retailers but not wholesalers.
B. dual channels of distribution.
C. all responsible and suitable wholesalers.
D. only those middlemen who give the product special attention.
E. only one middleman in each geographic area.

23. Intensive distribution:
A. gives a retailer more incentive to promote a product than he would have with exclusive distribution.
B. is not very likely to be used in combination with dual distribution.
C. is more likely to be used with relatively high priced products than with low priced products.
D. is often used for convenience products.
E. none of the above.

24. Exclusive distribution
A. should generally be used only if it is not possible to generate middleman interest in intensive distribution.
B. is legal as long as it does not involve vertical channel arrangements.
C. arrangements between a producer and middleman are illegal for most types of products, and thus they are not very common in the U.S.
D. usually involves some type of formal (contractual) arrangement among channel members.
E. None of the above is true.

25. Reverse channels may be used to retrieve products from:
A. business customers
B. final consumers
C. middlemen
D. all of the above
E. only A and C above

26. "Logistics" is concerned with:
A. creating time and place utility.
B. transporting, storing, and handling of physical goods along channel systems.
C. transporting, storing, and handling of physical goods within individual firms.
D. physical distribution.
E. All of the above.

27. When planning physical distribution, the marketing manager should:
A. set the customer service level so that every customer can get the product exactly when he wants it.
B. minimize the cost of distribution for a given customer service level.
C. minimize the cost of transportation.
D. maximize the speed of delivery.
E. make use of a distribution center.

28. The physical distribution concept says (or implies) that:
A. transporting, storing, and product-handling are unrelated activities for cost control.
B. the best distribution system is the lowest cost one.
C. a firm should seek to minimize the total cost of transporting, storing, and product-handling--for a given level of customer service.
D. if the transporting department minimizes its costs and the storing department minimizes its costs and the product-handling department minimizes its costs--then the total cost of physical distribution will be minimized.
E. Both A and D.

29. The "physical distribution concept" is probably being used in a firm if:
A. inventories are set based on just-in-time delivery policies.
B. the total cost of distribution is as low as possible.
C. storing costs have been minimized.
D. transporting, storing, and product-handling are seen as interrelated parts of one PD system.
E. transporting costs have been minimized.

30. The "total cost approach" to physical distribution management:
A. seeks to eliminate the storing function.
B. seeks to minimize the cost of transportation.
C. might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs.
D. ignores inventory carrying costs.
E. All of the above.

31. A chain of supply:
A. focuses on making services available whereas a channel of distribution focuses on making goods available.
B. may involve many firms, but only one manufacturer.
C. includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.
D. is easier to coordinate than a channel of distribution.
E. all of the above.

32. A chain of supply:
A. is part of a broader network of relationships called a channel of distribution.
B. is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain.
C. requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts.
D. focuses on procuring materials needed for production, so its main weakness is that it ignores customer needs.
E. A chain of supply concerns only direct relationships between producers, but a channel of distribution may involve middlemen.

33. Which of the following statements about electronic data interchange is FALSE?
A. Inventory information is automatically updated.
B. EDI has not yet spread to international markets.
C. A customer transmits its order information directly to the supplier's computer.
D. EDI is very common in the United States.
E. EDI puts information into a standardized format.

34. Regarding railroads,
A. full carload rates are lower than less-than-carload rates.
B. rail shipments usually move much faster than truck shipments.
C. they transport the same products in less-than-carload lots faster than full carload shipments.
D. they handle products only if they are shipped in full carload lots.
E. All of the above are true.

35. A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use:
A. inland waterways.
B. pipelines.
C. railroads.
D. trucks.
E. airways.

36. Considering weight, which one of the following transporting modes usually has the LOWEST cost?
A. Waterways
B. Airways
C. Trucks
D. Railroads
E. Pipelines

37. Shipping by air
A. is most useful for smaller, high-value items.
B. may reduce handling costs.
C. generally involves higher transportation costs than other modes of transportation.
D. All of the above are true.
E. None of the above is true.

38. The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:
A. truck service.
B. fast freight.
C. no longer being offered.
D. piggyback service.
E. flat-topping.

39. The storing function provides:
A. place utility.
B. form utility.
C. time utility.
D. possession utility.
E. None of the above.

40. The cost of carrying inventory is estimated to run as high as ________ percent of the value of the average inventory a year.
A. 22
B. 40
C. 15
D. 3
E. 8

41. A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses.
A. public
B. private
C. general merchandise
D. commodity

42. Public warehouses:
A. generally do not provide all the services that could be obtained in a company's own branch warehouse.
B. are not usually responsible for the risk of damage in the warehouse.
C. provide flexibility because the user pays only for the space used.
D. are not very useful to manufacturers who must maintain stocks in many locations, including foreign countries.
E. All of the above.

43. Compared to private warehouses, PUBLIC warehouses:
A. are not any more flexible because long-term leases are usually required.
B. may not always be conveniently available.
C. require no fixed investment but per unit storing costs are usually higher.
D. reduce managerial flexibility.
E. All of the above.

44. There are big shifts in demand from season to season for the lawn mowers produced by Grow Green Co.--and its need for storage facilities also varies. Grow Green should think about using:
A. piggyback service.
B. diversion in transit.
C. distribution centers.
D. public warehousing facilities.
E. None of the above is a good answer.

45. Modern warehouses typically do NOT have:
A. power-operated lift trucks.
B. electric hoists.
C. battery-operated motor scooters.
D. roller-skating order pickers.
E. freight elevators.

46. The primary function of a ______________ is to speed the flow of products and avoid unnecessary storing costs.
A. commodity warehouse
B. distribution center
C. merchant wholesaler
D. public warehouse
E. private warehouse

47. "Retailing" refers to:
A. the sale of products to final consumers.
B. the sale of both business and consumer products.
C. the sale of consumer products to wholesalers, retailers, or final consumers.
D. the performance of regrouping activities.
E. All of the above.

48. Which of the following is NOT retailing?
A. A vacuum cleaner manufacturer hires its own sales force to sell door to door.
B. A private ambulance service takes an accident victim to a hospital and charges him $100.
C. A group of students sell donuts to people passing by their dorm.
D. A book wholesaler has a mail-order catalog which offers discounts to final consumers who buy by mail.
E. All of the above are retailing.

49. A retailer's "Product" may include:
A. a particular assortment of goods and services.
B. location.
C. advice from salesclerks.
D. convenience.
E. all of the above.

50. A good marketing manager for a retailer knows that:
A. economic needs are more important than emotional needs in choosing a store.
B. no store can serve more than one social class.
C. consumers only go to stores that offer the lowest possible prices.
D. individual consumers have different economic and emotional needs.
E. All of the above are true.

51. Which of the following is NOT an economic need which helps explain why consumers choose a particular retailer?
A. Information
B. Shopping atmosphere
C. Special services
D. Convenience
E. Quality

52. Which of the following statements about single- and limited-line stores is TRUE?
A. Many are small, with high expenses relative to sales.
B. They usually believe in a "buy low and sell high" philosophy.
C. Such stores face the costly problem of having to stock some slow-moving items in order to satisfy their target markets.
D. Most conventional retailers are single- or limited-line stores.
E. All of the above are true.

53. Specialty shops:
A. offer fewer services than the typical limited-line store.
B. have trouble deciding what to carry because it's hard for them to get to know what their customers want.
C. rely heavily on knowledgeable salesclerks.
D. All of the above.
E. None of the above.

54. Department stores:
A. usually aim at customers seeking convenience products.
B. have accounted for a larger share of retail sales every year since 1950.
C. have no trouble holding their own against mass-merchandisers.
D. are organized into separate departments.
E. All of the above are true.

55. Department stores:
A. are basically a group of limited-line stores under one roof.
B. are decreasing in number, average sales per store, and share of retail business.
C. usually aim at customers seeking shopping products.
D. All of the above are true.
E. Only B and C are true.

56. The "mass-merchandising" concept:
A. suggests aiming at small but profitable target markets.
B. focuses on increasing sales and speeding turnover by lowering prices.
C. supports the conventional retailer's "buy-low and sell-high" philosophy.
D. stresses the need for conventional stores.
E. All of the above.

57. Regarding supermarkets, which of the following statements is TRUE?
A. They average less than $5 million a year in sales.
B. Net profits after taxes usually amount to about 3 percent of sales.
C. Compared to super warehouse stores, they offer lower prices and more service.
D. All of the above are true.
E. None of the above is true.

58. Regarding discount houses, which of the following statements is TRUE?
A. The early discount houses emphasized nationally advertised hard goods.
B. While some conventional retailers cut price on competitive items, discount houses regularly sell all of their products at smaller markups.
C. As early discounters were able to offer full assortments, they also sought "respectability" and moved to better locations.
D. Discount houses are fast-turnover, price-cutting operations.
E. All of the above are true.

59. A "supercenter":
A. tries to provide all of a customer's routine needs--at a low price.
B. probably would not affect nearby supermarkets.
C. is just another name for a mass-merchandiser.
D. is a large department store which uses supermarket methods.
E. All of the above are true.

60. Warehouse clubs such as Sam's Club and Costco
A. usually operate in large, no-frills facilities.
B. have been successful targeting small-business customers.
C. emphasize homogeneous shopping products.
D. usually charge consumers an annual membership fee.
E. All of the above are true.

61. Which of the following would be considered a retailing "category killer"?
A. Office Depot (office supplies)
B. PayLess (drugstores)
C. Lowe's (home improvements)
D. B. Dalton (books)
E. all of the above

62. Convenience (food) stores:
A. have enjoyed higher profits as more gas stations have converted and made this approach more popular.
B. offer greater width of assortment but less depth than most supermarkets.
C. try to earn better profits by high margins on a narrow assortment which turns over quickly.
D. charge about the same prices as nearby supermarkets.
E. None of the above is true.

63. Regarding automatic vending, which of the following statements is TRUE?
A. It is important for cigarettes, soft drinks, and candy.
B. Costs are relatively high because the machines are expensive to stock and repair.
C. Although its growth has been spectacular, automatic vending still accounts for less than 2 percent of total U.S. retail sales.
D. A major advantage is customer convenience.
E. All of the above are true.

64. Vending machine
A. sales now account for almost 20 percent of consumer spending.
B. retailing requires a lower margin to cover costs than for comparable products sold in stores.
C. retailing has been declining--because of high margin requirements.
D. operating expenses are high relative to the sales volume involved.
E. None of the above is true.

65. Telephone and direct-mail retailing:
A. uses computer lists and limited sales help.
B. is very inconvenient for all consumers.
C. was once popular, but the Internet put all these firms out of business.
D. is generally a mass marketing approach.
E. All of the above are true.

66. Internet retailers include:
A. limited-line retailers.
B. service providers.
C. mass-merchandisers.
D. department stores.
E. all of the above.

67. Some differences between online and in-store customers include:
A. In-store customers can usually inspect and immediately use the product.
B. Online customers are usually younger, better educated, and more upscale.
C. In-store customers usually get better customer service.
D. Online customers usually have better access to comparative information about products.
E. All of the above.

68. The "wheel of retailing" theory says that:
A. retailers go through cycles from high costs and prices to lower costs and profits.
B. general stores will dominate U.S. retailing in this century.
C. new types of retailers enter as low-status, low-margin, low-price operators and eventually offer more services and charge higher prices.
D. all of the above are true.
E. none of the above are true.

69. Which of the following is best illustrated by a supermarket that carries Nintendo video games?
A. The "superstore" concept
B. Scrambled merchandising
C. The "wheel of retailing"
D. Target marketing
E. Mass merchandising

70. Corporate chains
A. have continued to grow--and now account for about half of all retail sales.
B. have an advantage relative to independent stores when it comes to promotion and use of dealer brands.
C. increase their buying power by centralizing at least some of the buying for different stores.
D. all of the above.
E. none of the above.

71. Which of the following is NOT a franchise operation?
A. Subway (food).
B. H & R Block (tax work).
C. Midas Mufflers (auto repair).
D. 7-Eleven (convenience store).
E. All of the above are franchise operations.

72. Regarding modern wholesaling, which of the following statements is TRUE?
A. More careful selection of retailer customers has increased profitability.
B. Wholesalers are now more "retailer-minded."
C. Greater attention is being given to management advisory services.
D. Many wholesalers are using the Internet to reach new customers and improve profits.
E. All of the above are true.

73. Milt's Supply stocks electronic repair parts and related supplies and tools from various producers. Milt's sells primarily to small TV and electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that Milt's is a
A. single-line wholesaler.
B. manufacturers' agent.
C. drop-shipper.
D. truck wholesaler.
E. rack jobber.

74. Limited-function wholesalers:
A. usually cost more than service wholesalers.
B. include manufacturers' agents.
C. own (take title to) the products they sell.
D. include selling agents.
E. All of the above.

75. A broker's "Product" is:
A. financial skills--and perhaps credit.
B. market contacts for new products.
C. information about what buyers need and what supplies are available.
D. good storage and transportation facilities.
E. All of the above.

76. Strategy planning for Price is concerned with:
A. to whom and when discounts and allowances will be given.
B. how transportation costs will be handled.
C. how flexible prices will be.
D. at what level prices will be set over the product life cycle.
E. All of the above.

77. Any business transaction in a modern economy involves:
A. an exchange at a list price.
B. "dumping."
C. an exchange of money--the money being the Price--for something of value.
D. a loss of consumer surplus.
E. an exchange in which price serves as a measure of quality.

78. Which of the following is a PROFIT-ORIENTED pricing objective?
A. Meeting competition
B. Sales growth
C. Target return
D. Nonprice competition
E. Growth in market share

79. Some top managers seek only enough profits to convince stockholders that they are "doing a good job." The pricing objective of such managers is:
A. satisfactory profits.
B. status quo.
C. nonprice competition.
D. profit maximization.
E. meeting competition.

80. Genetech Corp. has invested heavily to develop a patented new product. Genetech wants to achieve a rapid return on its investment. It probably should set a ______________ pricing objective.
A. profit maximization.
B. target return.
C. sales-oriented.
D. status-quo.
E. None of the above.

81. Australian Outback Products Co. has introduced a new product and set the price to help achieve "the 1% share we need to be in the game." This is an example of a:
A. status-quo objective.
B. profit-oriented objective.
C. target return objective.
D. sales-oriented objective.
E. profit maximization objective.

82. Which of the following is a STATUS-QUO pricing objective?
A. Growth in sales
B. Maximize profits
C. Growth in market share
D. Satisfactory profits
E. Meeting competition

83. Prices are "administered" when:
A. they fall below "suggested list price."
B. prices can change every time a customer asks for a price.
C. government regulators set prices.
D. firms consciously set their own prices.
E. they are set by bargaining between buyers and sellers.

84. When individual firms set their own prices--sometimes holding them steady for long periods of time--rather than letting daily market forces determine prices, such prices are called:
A. flexible prices.
B. parallel prices.
C. equilibrium prices.
D. administered prices.
E. fixed prices.

85. The marketing manager for Aerial Photography, Inc. says his sales reps have gotten in the habit of setting prices which do not produce a profit. Aerial Photography apparently is using:
A. penetration pricing.
B. introductory price dealing.
C. administered pricing.
D. flexible pricing.
E. profit minimization pricing.

86. Trying to get the "cream" of a market (i.e., the top of a demand curve) at a high price before aiming at the more price-sensitive customers is consistent with a(an):
A. flexible-price policy.
B. sales-oriented pricing policy.
C. skimming pricing policy.
D. introductory price dealing policy.
E. penetration pricing policy.

87. Trying to sell a firm's new product to a large market at one low price is known as:
A. a skimming pricing policy.
B. introductory price dealing.
C. nonprice competition.
D. a penetration pricing policy.
E. a flexible-pricing policy.

88. Unilever is introducing a new brand of car window cleaner in market maturity. To speed its entry into the market--without encouraging price competition--Unilever should use:
A. a flexible-price policy.
B. a one-price policy.
C. a penetration pricing policy.
D. introductory price dealing.
E. a skimming pricing policy.

89. ______________ are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself.
A. PMs
B. Phony prices
C. Spiffs
D. Markups
E. Discounts

90. Goodyear, Inc. offers its customers a 10 percent discount if they buy at least $200,000 worth of products during a year. The products may be bought in one order--or spread out over several orders. Firestone, Inc. is offering a:
A. cumulative quantity discount.
B. brokerage allowance.
C. seasonal discount.
D. noncumulative quantity discount.
E. cash discount.

91. The following terms appeared on an invoice dated May 20 which was sent by a manufacturer to a retail store: 2/10, net 30. The amount of the invoice was $2,000. Assuming the retailer paid the invoice on June 1 (10 days after the products were delivered), how much should he have paid?
A. $1,900
B. $1,800
C. $2,000
D. $1,960
E. $2,040

92. Sierra Leather Furniture gives its wholesalers discounts of 30 percent and 10 percent--expecting the wholesalers to pass the 30 percent discount on to their retail customers. These discounts off the manufacturer's suggested retail prices--to cover the costs of the jobs the middlemen will do--are ______________ discounts.
A. seasonal
B. illegal
C. cash
D. trade (functional)
E. quantity

93. Some manufacturers give ______________ to retailers to pass on to the retailers' salesclerks to encourage aggressive selling of specific items or lines.
A. advertising allowances
B. cash discounts
C. slotting allowances
D. "push money"
E. trade discounts

94. If a producer wants title to pass to a buyer immediately--but still wants to pay the freight bill--the invoice should read:
A. F.O.B. buyer's factory.
B. F.O.B. shipping point.
C. F.O.B. delivered.
D. F.O.B. seller's factory--freight prepaid.
E. F.O.B. mill.

95. A seller's invoice reads: "Seller pays the cost of loading said merchandise onto a common carrier. At the point of loading, title to such products passes to the buyer, who assumes responsibility for damage in transit, except as covered by the transportation agency." This shipment has been shipped:
A. F.O.B. delivered.
B. F.O.B. shipping point.
C. F.O.B. mill, freight absorbed.
D. F.O.B. buyer's factory.
E. F.O.B. seller's factory--freight prepaid.

96. Freight absorption pricing:
A. amounts to cutting list price to appeal to new geographic markets.
B. forces all buyers to pay higher shipping costs.
C. tends to restrict firms from competing in distant markets.
D. tends to decrease competition.
E. Both B and C.

97. A producer's price level decision is made by the market in:
A. a monopoly.
B. pure competition.
C. monopolistic competition.
D. All of the above.
E. None of the above.

98. Antidumping laws:
A. protect consumers from the high prices charged by monopolistic foreign producers.
B. set the maximum price a foreign producer can charge.
C. are used in an effort to control the minimum price of imported products.
D. make it illegal for a foreign producer to sell a product at a price level lower than domestic producers.
E. force foreign producers to sell below cost if they want to compete with a nation's domestic producers.

99. "Price fixing" means:
A. changing a price that was set at the wrong level by the financial manager.
B. pricing a product that will be sold in a foreign market at a level below the cost of production.
C. selling products of like grade and quality to different buyers at different prices.
D. a firm consciously setting its prices.
E. competitors getting together to raise, lower, or stabilize prices.

100. A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that:
A. the products were not of "like grade and quality."
B. any price differences were to "meet competition in good faith."
C. the price differences did not injure competition.
D. the price differences were justified on the basis of cost differences.
E. All of the above are possible defenses against price discrimination charges.

101. Most firms in the business world set their prices using:
A. federal price guidelines.
B. demand-oriented price setting.
C. cost-oriented price setting.
D. supply and demand analysis.
E. marginal analysis.

102. The text says "markup" means percent of:
A. "mark-on."
B. selling price--unless otherwise stated.
C. fixed cost.
D. delivered cost--unless otherwise stated.
E. cost of sales.

103. The typical markup (percent) is the:
A. cost of an item divided by its selling price--times 100.
B. selling price minus the cost of the item, divided by the cost of the item--times 100.
C. selling price of an item, divided by its cost--times 100.
D. selling price minus the cost of the item, divided by the selling price--times 100.