All Free Management Sciences MCQs with Answers
Every Management Sciences question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
3,770 questions · page 115 of 189
- A. second-degree price discrimination
- B. third-degree discrimination
- C. first-degree price discrimination
- D. fourth-degree discrimination
Explanation: First-degree price discrimination charges each customer according to that customer's willingness or demand for the product.
Correct answer: first-degree price discrimination- A. English auctions
- B. Dutch auctions
- C. Sealed-bid auctions
- D. all of the above
Explanation: Auction-type pricing includes English auctions, Dutch auctions, and sealed-bid auctions.
Correct answer: all of the above2283. If the unit cost is $25 and the desired return on sales is 60% then the markup price is _________?
- A. $62.50
- B. $65.50
- C. $69.50
- D. $75.50
Explanation: When the desired return on sales is 60%, the markup price is calculated as unit cost divided by one minus the return: $25 ÷ (1 − 0.60) =…
Correct answer: $62.50- A. markup demand
- B. markup priceEconomics
- C. markup cost
- D. unit cost
Explanation: Markup price is found by dividing unit cost by one minus the desired return: unit cost ÷ (1 − desired return).
Correct answer: markup priceEconomics- A. markup demand
- B. markup cost
- C. unit cost
- D. markup price
Explanation: Dividing total fixed cost by unit sales converts fixed cost into fixed cost per unit; adding variable cost per unit gives unit cost.
Correct answer: unit cost- A. perceived pricing
- B. value pricingPrice Comparisons
- C. high low pricing
- D. everyday low pricing
Explanation: Everyday low pricing means charging a consistently low price instead of alternating between regular high prices and promotional discounts.
Correct answer: everyday low pricing- A. determining demand
- B. select pricing objective
- C. analyzing prices of competitor's
- D. estimating costs
Explanation: Maximum current profit, market share growth, market skimming, and product-quality leadership are alternative pricing objectives a firm may…
Correct answer: select pricing objective- A. $4.33
- B. $3.33
- C. $2.33
- D. $5.33
Explanation: Average cost is calculated by dividing total cost by output: $70,000 ÷ 30,000 units = approximately $2.33 per unit.
Correct answer: $2.33- A. rightward
- B. downward
- C. leftward
- D. upward
Explanation: Prestige or Veblen goods may have an upward-sloping demand curve because a higher price can signal status and exclusivity, increasing…
Correct answer: upward- A. $32.25
- B. $40.25
- C. $36.25
- D. $45.25
Explanation: Using target-return pricing, add the desired return on invested capital per unit to unit cost: $30 + (0.75 × $60,000 ÷ 20,000) = $32.25.
Correct answer: $32.25- A. stable
- B. high
- C. low
- D. constant
Explanation: For a normal product, a high price generally reduces quantity demanded, assuming other factors remain unchanged.
Correct answer: high- A. shallow-pockets trap
- B. fragile-market-share trap
- C. low-quality trap
- D. price-war traps
Explanation: The low-quality trap occurs when customers interpret a price reduction as evidence that the product's quality has deteriorated.
Correct answer: low-quality trap- A. low-quality trap
- B. price-war traps
- C. shallow-pockets trap
- D. fragile-market-share trap
Explanation: The fragile-market-share trap describes gaining market share through price cuts while attracting customers who are not loyal and may leave…
Correct answer: fragile-market-share trap- A. every day competitive industry
- B. monopolistic industry
- C. oligopolistic industry
- D. pure competition industry
Explanation: Paper, fertilizer, and steel are typically produced by a small number of large firms, making these industries oligopolistic.
Correct answer: oligopolistic industry- A. offset
- B. compensation deal
- C. barter
- D. buy back arrangement
Explanation: Barter is direct exchange of goods between a buyer and seller without money or a third-party intermediary.
Correct answer: barter2296. The bidding technique in which only one bid is submitted by sellers is classified as ________?
- A. equalizing-bid auctions
- B. descending bids auction
- C. ascending bids auctions
- D. sealed-bid auctions
Explanation: A sealed-bid auction allows each seller to submit one confidential bid, so bidders do not successively revise offers.
Correct answer: sealed-bid auctions- A. second-degree price discrimination
- B. first-degree price discrimination
- C. third-degree discrimination
- D. fourth-degree discrimination
Explanation: Second-degree price discrimination charges different prices according to the quantity purchased, such as volume discounts.
Correct answer: second-degree price discrimination- A. Dutch auctions
- B. English auctions
- C. equalizing-bid auctions
- D. Australian auctionsFind Prototyping Services
Explanation: An English auction has one seller and many buyers, with bidders openly raising the offered price until no higher bid is made.
Correct answer: English auctions- A. First degree
- B. Second degree
- C. Third degree
- D. Fourth degree
Explanation: Image, location, channel and time-based pricing charge different prices according to identifiable market segments or purchasing…
Correct answer: Third degree- A. average costs
- B. fixed costs
- C. variable costs
- D. discounted costsTake Economics Courses
Explanation: Average cost is found by dividing total cost by the level of output: average cost = total cost ÷ quantity produced.
Correct answer: average costs