1. What are the three major factors affecting pricing decisions? 2. What are the two pricing approaches that companies use to make long-run pricing decisions? Give an example of a company or type of product that would most likely be used for each approach. 3. Give an example of a very competitive, less competitive, and non-competitive market product. 4. Which pricing approach begins by selecting a Target Price? If the Target Price is $500 and the Target Operating Income is $75, what is the Target Cost? 5. What is Cost-Plus Pricing and how is it determined? If the Cost base of a new product is $500 per unit and the company uses a markup component of 15%, what is the prospective selling price? 6. Define "product life cycle". What is the typical product life cycle for automobiles? 7. What is another name for "Locked-in Costs"? What is "reverse engineering"? 8. Give an example of "Price Discrimination" as defined in the chapter. When, if ever, is price discrimination NOT legal? 9. What is "Peak-load pricing"? 10. Exxon and Shell got together to agree on a sales price for their gasoline. Is this legal? What is it called