Answer the Following Questions Using the Information Below

question 109

Multiple Choice

Answer the following questions using the information below:
Sherry's Custom Jewelry sells a single product. 700 units were sold resulting in $7,000 of sales revenue, $2,800 of variable costs, and $1,200 of fixed costs.
-Contribution margin per unit is:

• A)$4.00
• B)$4.29
• C)$6.00
• D)None of these answers are correct.

Distinguish between the concepts of economic profits in the short run and long run across different market structures.

Appreciate the role of consumer surplus and how it is affected by market structures and pricing strategies.

Interpret demand elasticity for firms in monopolistic competition relative to perfect competition and monopoly.

Understand the criteria for monopolistic competition and the concept of perfect price discrimination.

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Definitions:

Memorized Sales Presentation

A pre-designed speech or pitch used by salespeople, learned by heart, to persuade potential buyers.

Formula Sales Presentation

A pre-structured presentation used by salespeople that follows a set format designed to generate a specific response from potential buyers.

Need-Satisfaction

A sales approach that focuses on identifying and meeting the needs or problems of the customer as a key to closing the sale.