KeyLine, Inc

question 66

Multiple Choice

KeyLine, Inc., engages primarily in the manufacture of touch-sensitive LCD monitors. The company prices its products so that it earns a 20 percent return on investment. Which pricing objective is the company following?

• A) Meet competition
• B) Unit sales growth
• C) Nonprice competition
• D) Target return
• E) Share of market

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Definitions:

Average Total Cost

The total cost divided by the number of goods produced, representing the per-unit cost of production.

Profit-Maximizing Monopoly

A market condition where a single seller dominates, aiming to achieve the highest possible profit by controlling prices and output.

Total Profit

The total income of a business after all expenses and costs have been deducted from its total revenue.

Optimum Efficiency

The state in which resources are allocated in the most efficient manner possible, maximizing outputs while minimizing wastes and costs.