Answer these following questions: 1. Set price to cover both fixed and variable costs a. Penetration pricing b. Marketing skimming c. Value pricing d. Cost based pricing To determine an appropriate price, a company must have a good understanding of market forces a. True b. False Where products are not easily differentiated from competitor goods, prices are not set by the company, but rather by the laws of supply and demand- such companies are called price takers. a. True b. False Where products are unique or clearly distinguishable from competitor goods, prices are set by the company a. True b. False 5. Cost that provides the desired profit on a product when the market determines a product's price a. Desired Cost b. Target Cost Predetermined Cost In an environment with little or no competition, a company can often set the price. a. True b. False When a company sets price, the price is normally a function of product cost; cost-plus pricing a. True b. False 8. In determining the proper mark-up, a company must consider competitive and market conditions a. True b. False