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AMA PCM Exam Sample Questions

Question 5

The Beter Business Bureau suggests that at least _____ of the sales should occur at a price for it to be used as a reference price.

1. 20 percent

2. 30 percent

3. 40 percent

4. 50 percent

5. 60 percent

Aoswern D

Question 17

Pop-Mart, a chain of discount stores in the U.S., procures its products from many suppliers. Indigo is one among hundreds of other suppliers who supply poultry products to Pop-Mart and other retailers. The price of the products is ofen dictated by the demand from consumers. Which of the following is true of this scenario?

1. Pop-Mart’s competton with other retailers represents pure competton.

2. Indigo is competng in an oligopolistc market and depends on compettors to increase product prices.

3. Indigo can carve an identty for itself and move into a monopolistcally compettve market by branding its poultry products.

4. Pop-Mart’s suppliers cannot decommoditze their products in order to make more money.

5. The large number of suppliers indicates that the poultry industry indicates monopolistc competton.

Aoswern C

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Question 10

Cinfy, an electronic appliances manufacturer, sells 30 pizza ovens, 60 cofee makers, and 90 sandwich toasters per day. Despite warnings from analysts, Cinfy hikes prices of its toasters from $150 to $180, and toaster sales fall by 40%. Afer this pricing strategy backsres, Cinfy decides that a 10% drop in demand is acceptable, but not more. Assuming that the elastcity of demand for the toasters remains constant, what is the maximum price hike that Cinfy can aford without letng the sales drop by more than 10%?

1. $2.50

2. $5

3. $7.50

4. $9

5. $15

Aoswern C

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Question 1

LockIt, a manufacturer of electronic safes, accounts for 5% of the safes sold in the U.S. LockIt’s current business strategy is aimed at selling beter-quality products at higher prices than compettors. The higher prices make LockIt one of the leaders in terms of revenue earned. Having satssed inital objectves of earning a certain ROI, LockIt sets a target of accountng for 25% of the units sold during the next snancial year. To further this goal, LockIt introduces a line of lower-priced safes that are priced below similar competng products. LockIt’s new pricing strategy is _____.

1. sales oriented

2. prost oriented

3. customer oriented

4. supplier oriented

5. compettor oriented

Aoswern A

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Question 5

The Beter Business Bureau suggests that at least _____ of the sales should occur at a price for it to be used as a reference price.

1. 20 percent

2. 30 percent

3. 40 percent

4. 50 percent

5. 60 percent

Aoswern D

Question 17

Pop-Mart, a chain of discount stores in the U.S., procures its products from many suppliers. Indigo is one among hundreds of other suppliers who supply poultry products to Pop-Mart and other retailers. The price of the products is ofen dictated by the demand from consumers. Which of the following is true of this scenario?

1. Pop-Mart’s competton with other retailers represents pure competton.

2. Indigo is competng in an oligopolistc market and depends on compettors to increase product prices.

3. Indigo can carve an identty for itself and move into a monopolistcally compettve market by branding its poultry products.

4. Pop-Mart’s suppliers cannot decommoditze their products in order to make more money.

5. The large number of suppliers indicates that the poultry industry indicates monopolistc competton.

Aoswern C