June 7

Commercial Day.

Talk on Pricing and the Oil Price Game.

Questions.

1. Please define the following terms (Ch 7 in the textbook)

Mark-up
margin
variable costs
fixed costs
break-even point
economy of scale
price-fixing
msrp
bait and switch
skimming
marketing boards

2.  Come up with 2 examples of economies of scale.

3. Come up with 2 examples of diseconomies of scale.  (pg 250-254)