Chapter 9

Given up in an exchange to acquire a good or service

price charged to customers multiplied by the number of units sold

revenue minus expense

net profit after taxes divided by total assets

a company's product sales a percentage of total sales for that industry

a pricing objective that maintains existing prices or meets the competition's prices

the quantity of a product that will be sold in the market at various prices for a specified period

the quantity of a product that will be offered to the market by a supplier at various prices for a specified period

the price at which demand and supple are equal

consumers' responsiveness or sensitivity to changes in price

a situation in which a consumer demand is sensitive to changes in price

a situation in which as increase or a decrease in price will not significantly affect demand for the product

a situation in which total revenue remains the same when prices change

a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity

a cost that varies with changes in the level of output

a cost that does not change as output is increased or decreased

total variable cost divided by quantity of output

total costs divided by quantity of output

the change in total cost associated with one-unit change in output

the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for

the practice of marking up prices by 100 percent, or doubling the cost

a method of setting prices that occurs when marginal revenue equals marginal cost

the extra revenue associated with selling an extra unit of output of the change in total revenue with a one-unit change in output

a method of determining what sales volume must be reached before total revenue equals total cost

stocking well-known branded items at high prices in order to sell store brands at discounted prices

a private electronic network that links a company with its suppliers and customers

charging a high price to help promote a high-quality image