Ⅱ.Reading Comprehension (20%)

Questions 21 to 25 are based on the following passage:

The two basic components that affect product pricing are costs of manufacture and competition in selling. It is unprofitable to sell a product below the manufacturer’s production costs and unfeasible to sell it at a price higher than that at which comparable merchandise is being offered. Other variables also affect pricing. Company policy may require a minimum profit on new product lines or a specified return on investment, or discounts may be offered on purchases in quantity.

Attempts to maintain resale prices were facilitated for many years in the United States under federal and state fair trade laws. Since 1975, however, these laws have been nullified, thereby prohibiting manufacturers from controlling the prices set by wholesalers and retailers. Such control can still be maintained if the manufacturers wish to market directly through their own outlets, but this is seldom feasible except for the largest manufacturers.

Attempts have also been made, generally at government insistence, to maintain product price competition in order to minimize the danger of injuring small businesses. Therefore, the legal department of a marketing organization reviews pricing decisions.

21.The two basic components that affect product pricing are ______.

A. the cost of manufacture and that of competition in selling    

B. the costs of manufacture and those of competition in selling

C. the costs of manufacture and the status of competition in selling  

D. the manufacturer’s production costs and those of the buyers

22.It is ______ to sell a product at a price higher than that at which comparable merchandise is being offered.

A. profitable                                                      B.uncertain

C. unfeasible                                                     D.feasible

23.Which of the following statements is NOT right?

A. Company policy may require a minimum profit on new product line.

B. Company policy may require a specified return on investments.

C. Discounts may be offered on purchases in quantity.

D. Company policy may require a specified return on discounts.

24.______ prohibit manufacturers from controlling the prices set by wholesalers and retailers.

 A. Buyers                                                       B.Laws

C.Markets                                                        D.Customers

25.The legal department of a marketing organization reviews pricing decisions. The underlined word in this sentence means ______.

A. restudies                                                      B.remakes

C.learns                                                            D.inspects