Chapter 14 EOU and Competitive Pricing Pretest

prices lower

supply higher

consumers to buy less

prices higher

lower prices

better quality

less consumer choice

innovation

invest in other businesses

offer more products

donate profits to benefit society

all of the above

profit calculated as a percentage of costs

the money left over when sales are subtracted from costs

the economics of one unit

the reason entrepreneurs take on business risk

they create competition among consumers

the supply of the toy may fall

suppliers of the toy may charge a higher price for it

all of the above

competition is high

operating costs are higher than money from sales

money from sales is lower than overhead

money from sales is greater than money spent on expenses

demand pricing

competition-based pricing

cost-plus pricing

value-based pricing

the calculation of the profit or loss a business makes on each unit sold

the difference between the sales price of one unit and the cost of that unit

the calculation of the profit or loss on one unit of sale

all of the above

30%

50%

60%

none of the above

46%

65%

50%

32%