After Estimating the Demand and Costs Associated with Alternative Prices

question 88

Multiple Choice

After estimating the demand and costs associated with alternative prices, a company has chosen to price its product in such a way that it gains the highest rate of return on its investment. The company is looking to ________.

• A) maximize its market share
• B) skim the market
• C) become a product-quality leader
• D) survive in the market
• E) maximize its current profit

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Definitions:

Straight Rebuy Order

A routine purchase transaction in which a business reorders a product without any modifications to the specifications or terms.

Wholesaler

Firm engaged in buying, taking title to, often storing, and physically handling goods in large quantities, then reselling the goods (usually in smaller quantities) to retailers or industrial or business users.

Derived Demand

Demand for a product or service that arises from the demand for another product or service, such as the demand for steel being derived from the demand for cars.

Home Permits

Refers to the official approvals or licenses issued by local government agencies allowing for the construction, renovation, or major alteration of a house or residential building.