17. Greg runs a high adventure, water-rafting experience on the Snake River in Wyoming. He is reviewing his pricing schedule for the upcoming season (summer of 2016). Some of his costs can be applied to each individual customer that sign-up for trips. These include food items such as water and snack items ($13.00/person), Individual life vests [$18.00/person); and, individual sunscreen, tissue, and first-aid kits ($4.00/person). He also has predictable costs such as licensing fees of $300; Kayak rentals $3,500, office rental $500/month for 4 months; accounting services $1,000, and his Internet and mobile services expenses $800. If Greg prices his 2 hr.-adventure at $100/customer, how many persons must take the trip in order for Greg to break-even? a. 217 persons I b. 117 persons c. 12 persons d. 76 persons 18. Plentitude Pharmaceuticals has recently developed a new arthritis drug for people with severe arthritic conditions. This drug cannot be purchased over the counter. It must be prescribed by a physician. The company believes that it can price relatively high. In trials, the drug was evaluated as superior to most if not all arthritis drugs on the market. From a marketing perspective, we say that Plentitude is using a strategy a. Volume strategy b. Penetration pricing strategy c. Knockoff strategy d. Skimming strategy 19. pricing is a strategy where a product is priced low to discourage competition. a. Penetration b. Skimming c. High-low d. Psychological 20. Jerry was selling his house. He priced it at $199,000, because it sounded cheaper than $200,000. When Ted saw what Jerry did, he put a "for sale" sign on his boat, for $2,999. Jerry and Ted are using a. High-Low pricing b. Penetration pricing c. Skimming pricing d. Psychological pricing 21. What is the purpose of the product life cycle? (extra 1 point)