Compare the Following Statements and Select the One That Is

question 153

Multiple Choice

Compare the following statements and select the one that is accurate regarding a profit maximization strategy.

• A)For a profit maximization strategy to work over the long term, the firm must have a significant cost or resource advantage over competitors.
• B)Profit maximization should not be used as a permanent pricing objective, but is effective in allowing a firm to endure a difficult time.
• C)A profit maximization strategy sets prices low to encourage a greater volume of purchases and lower the level of involvement for the consumer.
• D)A profit maximization strategy is best used when a product is in the growth and maturity stage of the product life cycle.
• E)Profit maximization assumes that customers value a product's differentiating attributes and are willing to pay a higher price to take advantage of those attributes.