Term
|
Definition
| exchanging goods and services for other goods and services rather than for money |
|
|
Term
|
Definition
| money or other considerations exchanged for the ownership or use of a good or service |
|
|
Term
|
Definition
| the ratio of perceived benefits to price; or value = (perceived benefits)/(price) |
|
|
Term
|
Definition
| the practice of simultaneously increasing product and service benefits while maintaining or decreasing price |
|
|
Term
|
Definition
Profit = Total Revenue - Total Cost; or
Profit = (Unit Price x Quantity Sold) - (Fixed Cost + Variable Cost) |
|
|
Term
|
Definition
| specify the role of price in an organization's marketing and strategic plans |
|
|
Term
|
Definition
| factors that limit the range of prices a firm may set |
|
|
Term
|
Definition
| graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price |
|
|
Term
|
Definition
| those that determine consumers' willingness and ability to pay for goods and services |
|
|
Term
|
Definition
| the total money received from the sale of a product |
|
|
Term
|
Definition
| the average amount of money received for selling one unit of a product, or simply the price of that unit |
|
|
Term
|
Definition
| the change in total revenue (TR) that results from producing and marketing one additional unit of a product |
|
|
Term
| Price Elasticity of Demand |
|
Definition
| the percentage change in quantity demanded relative to a percentage change in price |
|
|
Term
|
Definition
the total expense incurred by a firm in producing and marketing a product.
Total Cost = Fixed Cost + Variable Cost |
|
|
Term
|
Definition
| the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold |
|
|
Term
|
Definition
| the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold |
|
|
Term
|
Definition
| variable cost (VC) expressed on a per unit basis for a product |
|
|
Term
|
Definition
| the change in total cost that results from producing and marketing one additional unit of a product |
|
|
Term
|
Definition
| a continuing, concise trade-off of incremental costs against incremental revenues |
|
|
Term
|
Definition
| a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output |
|
|
Term
|
Definition
the quantity at which total revenue (TR) and total cost (TC) are equal
TR = TC |
|
|
Term
|
Definition
| a graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold |
|
|
