Which of the following products is an example of a manufacturer brand?
A) Great Value Corn Flakes
B) JCPenney jeans
C) Kmart tires
D) Sony TVs
E) Safeway tomato sauce
Question 2Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the
A) elasticity of demand.
B) breakeven point.
C) variable costs.
D) price elasticity.
E) the sum of fixed costs.
Question 3At the breakeven point,
A) the money a company brings in from selling products equals the amount spent producing the products.
B) the total fixed costs are exactly equal to the total variable costs.
C) profits are exactly equal to the difference between revenue and total variable costs.
D) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit.
E) the marginal cost curve and the average cost curve will be identical for a particular product.
Question 4The talking gecko used by Geico Insurance facilitates the development of
A) brand associations.
B) brand quality.
C) product preference.
D) brand loyalty.
E) product equity.
Question 5Compared to creating and developing a brand from scratch, a firm sometimes buys a brand from another company at a premium price because outright purchase is
A) more challenging strategically.
B) less time consuming.
C) less risky.
D) less expensive.
E) less expensive and less risky.
Question 6If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where
A) total costs and total revenues are equal.
B) marginal revenue is at its highest level.
C) marginal revenue exceeds marginal cost.
D) marginal revenue equals marginal cost.
E) demand is most elastic.
Question 7Brand name awareness is an important element of brand equity because a familiar brand is more likely to be in a customer's ____ than an unfamiliar brand.
A) inept set
B) loyalty set
C) preference group
D) brand group
E) consideration set
Question 8When marginal cost is equal to marginal revenue, the firm should
A) produce more to increase profits.
B) produce less to decrease total costs.
C) stop producing additional units to maximize profits.
D) provide discounts to encourage purchases.
E) intensify distribution to increase sales.
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