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West offers a flat price for a trip to Yellowstone for a wilderness hike. Wild Out West is using _____ pricing, a form of _____ pricing.
Penetration; Competition-based
Penetration; cost-based
 Bundle; demand-basedChain-markup; demand-based
Bundle; profit-based
Lecture page 107
A) Penetration pricing consist of starting with a low price and gradually bringing it up. There is no mention of that in this example. Also, penetration pricing is a form of demand-based pricing.
 B)Penetration is not a cost-based form of pricing. It is demand-based.
C) The question describes a “flat price” for a trip to Yellowstone (implying transportation) and a wilderness hike. That comprises a bundle, which isa demand-based pricing approach.
D) There is no mention of a markup in this question. Also, there is no long marketing channel in this example so it cannot be chain-markup pricing.
E) This is a case of bundle pricing, but bundle pricing is a form of demand-based pricing, not profit-based.
Question 4 The change in total revenue obtained by selling one additional unit of a product is called: The change in total revenue obtained by selling one additional unit of a product is called:
average revenue.
marginal revenue.
median revenue.
marginal cost.
demand revenue.
Text page 341
A) Average revenue is the average amount of money received per unit of output. Average revenue is total revenue divided by the quantity sold.
B) Marginal revenue is the change in total revenue obtained by selling one additional unit of output. It is the revenue received from an additional unit of output.
C) Created term
D) Marginal cost by definition is the change in total cost that results from producing and marketing one additional unit of output. It is the cost of an additional unit.
E) Created term.
Question 5 Skip to question text.Leupold & Stevens, Inc., makes Leupold scopes for rifles and has introduced a new scope that has the quality and performance for which Leupold & Stevens is famous at a price much lower than it has ever solda rifle scope before.
 The new scope offers several different magnifications and is the only scope in the $200range that is made in the United States. Which pricing strategy is Leupold & Stevens using to appeal to a larger market?
 price lining
odd-even pricing
pricingskimming pricing
penetration pricing
Text page 353
A. “Price lining” is where a firm that is selling not just a single product but a line of productsmay price them at a number of different specific pricing points.
B. “Odd-even pricing” involves setting prices a few dollars or cents under an even number. The presumption is that consumers will relate the price

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