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Question 3 Elijah has classified the following items under variable costs. Which item has he classified INCORRECTLY?a. expenses for partsb. wagesc. outgoing freightd. property taxesQuestion 5 Which of the following statements about ethical behavior in business is TRUE?a. The legal environment sets the highest standard of ethical behavior.b. The legal environment sets the maximum standard of ethical behavior.c. The legal environment sets the minimal standard of ethical behavior.d. The legal environment sets the normative standard of ethical behavior.Question 7Which of the following statements BEST describes a markup?a. A markup is a dollar amount subtracted from the cost of products to get the selling price.b. A markup is the selling price minus the cost of the item, divided by the cost of the item-times 100.c. A markup is the selling price of an item, divided by its cost-times 100.d. A markup is a dollar amount added to the cost of products to get the selling price.Question 8 Michael Soles--owner of Soles Shoe Store--recently discovered that shoe stores in his trading area have an average markup of 40%. Upon investigation, Michael found that his average markup is $15 on shoes that he sells for $45. This suggests that:a. Michael has higher-than-average costs.b. Michael is pricing his products higher than his competitors are.c. Michael is taking a smaller average markup than his competitors are.d. Michael's markups in dollar amounts are about the same as his competitors.Question 9 The monopolistic competition that is typical of the U.S. economy:a. always leads to higher prices, but it may not lead to higher consumer satisfaction.b. is a problem because it does not result in products that reflect consumer's social values.c. is the result of consumer preferences.d. is the result of manipulation of markets by business firms.Question 10 The reason that MICRO-marketing costs too much in many firms is that:a. the marketing concept has not been accepted and implemented.b. most new products are not necessary to meet competition.c. marketing is not really needed.d. advertising is usually ineffective.question 11, 300 wordsWhat is the difference between leader pricing and bait pricing? What do they have in common? How can their use affect a marketing mix? Explain your answer.
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