Term
|
Definition
| Total costs divided by quantity of output. p. 523 |
|
|
Term
| average variable cost (AVC) |
|
Definition
| Total variable costs divided by quantity of output. p. 523 |
|
|
Term
|
Definition
| A method of determining what sales volume must be reached before total revenue equals total costs. p. 526 |
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|
Term
|
Definition
| The quantity of a product that will be sold in the market at various prices for a specified period. p. 516 |
|
|
Term
|
Definition
| A situation in which consumer demand is sensitive to changes in price. p. 518 |
|
|
Term
|
Definition
| Consumers’ responsiveness or sensitivity to changes in price. p. 518 |
|
|
Term
|
Definition
| A cost that does not change as output is increased or decreased. p. 523 |
|
|
Term
|
Definition
| A situation in which an increase or a decrease in price will not significantly affect demand for the product. p. 518 |
|
|
Term
|
Definition
| The practice of setting prices by doubling the cost. p. 525 |
|
|
Term
|
Definition
| The change in total costs associated with a one-unit change in output. p. 523 |
|
|
Term
|
Definition
| The extra revenue associated with selling an extra unit of output, or the change in total revenue with a one-unit change in output. p. 525 |
|
|
Term
|
Definition
| A company’s product sales as a percentage of total sales for that industry. p. 515 |
|
|
Term
|
Definition
| The cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for. p. 523 |
|
|
Term
|
Definition
| Charging a high price to help promote a high-quality image. p. 523 |
|
|
Term
|
Definition
| That which is given up in an exchange to acquire a good or service. p. 512 |
|
|
Term
|
Definition
| The price at which demand and supply are equal. p. 518 |
|
|
Term
|
Definition
| Revenue minus expenses. p. 512 |
|
|
Term
|
Definition
| A method of setting prices that occurs when marginal revenue equals marginal cost. p. 525 |
|
|
Term
| return on investment (ROI) |
|
Definition
| Net profit after taxes divided by total assets. p. 514 |
|
|
Term
|
Definition
| The price charged to customers multiplied by the number of units sold. p. 512 |
|
|
Term
| selling against the brand |
|
Definition
| Stocking well-known branded items at high prices in order to sell store brands at discounted prices. p. 529 |
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|
Term
|
Definition
| A pricing objective that maintains existing prices or meets the competition’s prices. p. 516 |
|
|
Term
|
Definition
| The quantity of a product that will be offered to the market by a supplier at various prices for a specified period. p. 517 |
|
|
Term
|
Definition
| A situation in which total revenue remains the same when prices change. p. 518 |
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