If a Firm Charges a Price of $5 for a Product

question 39

Multiple Choice

If a firm charges a price of $5 for a product with a cost of $2, the markup on price equals:

• A) 60%
• B) 150%
• C) 250%
• D) 40%

Understand the role and limitations of public relations and publicity within promotion strategies.

Grasp various pricing strategies firms use to influence market acceptance and sales.

Appreciate the role of distribution systems in product availability.

Understand the concept of price elasticity and its significance in product pricing.

---

Definitions:

Demographic

Statistical data relating to the population and particular groups within it, often used in market analysis to segment audiences.

Lifestyle

A person’s typical way of life as expressed by his or her activities, interests, and opinions.

Targeting

The process of identifying and focusing marketing efforts on a specific demographic or niche market that is most likely to buy a product or service.

Maximizing Sales

Strategies and efforts aimed at increasing the volume of products sold, thereby boosting revenue.