Statements about break-even chart

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1. Which of the following statements about a break-even chart is true?

    a. It is a tool marketers use to examine the relationship between supply and demand.

    b. It is used to determine how the customer-perceived value changes with value-added pricing.

    c. It uses variable costs, the unit price, and fixed costs.

    d. It is a tool used to calculate fixed costs.

    e. It shows the level of earnings a company has during an accounting period.

2. Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

    a. monopolistic competition

    b. pure competition

    c. oligopolistic competition

    d. a pure monopoly

    e. socialism

3. ________ are the sum of the ________ and ________ for any given level of production.

    a. Fixed costs; variable; total costs

    b. Break-even costs; fixed; total costs

    c. Total costs; fixed; variable costs

    d. Fixed costs; total; variable costs

    e. Variable costs; fixed; total costs

4. When using price steps, the seller must establish perceived ________ that support the price differences among the products in the line.

    a. images

    b. nonprice competition

    c. value differences

    d. quantity levels

    e. strategies

Reference no: EM131426974

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