Piper & Son Makes Pickled Peppers, Sold in Upscale Supermarkets

question 92

Multiple Choice

Piper & Son makes pickled peppers, sold in upscale supermarkets and specialty food stores. The company has profit-maximizing pricing objectives, so managers constantly monitor the prices of key ingredients such as peppers, vinegar, and garlic. How can setting the price for pickled peppers too high yield profits that are lower than the maximum?

• A) The high price will cause the convenience goods to become shopping goods.
• B) The high price will hurt the company's reputation, so the product will decline.
• C) The high price will generate a large profit per jar, but too few jars will be sold.
• D) Customers will insist on paying a lower price, resulting in less income.
• E) The high price will cause expenses to rise, reducing profits.

---

Definitions:

Counteroffer

A response to an offer in negotiations that makes modifications to the initial offer.

Common Law

Common Law is a body of unwritten laws based on legal precedents established by the courts.

Mirror Image

A rule in contract law stating that an offer must be accepted exactly with no modifications; the acceptance must "mirror" the offer.

Mutual Assent

Mutual assent is the agreement between parties to enter into a contract, demonstrated by offer and acceptance.