Thompson Pool and Patio Is Known for Quality Pool Installations,excellent

question 40

Multiple Choice

Thompson Pool and Patio is known for quality pool installations,excellent customer service,and reasonable prices.If you want to have a Thompson pool,you will have to wait about six months due to demand for their product.While Thompson could probably price its product higher,given the demand,they don't.Instead,the company sets its price so that it will earn a reasonable level of profits.Thompson seems to base its pricing policy on:

• A) profit maximization.
• B) earning satisfactory profits.
• C) creating retained earnings.
• D) making the most money as possible.
• E) decreasing consumer demand.

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Definitions:

Public Goods

Goods for which rivalry among consumers is absent and exclusion of nonpaying customers is difficult.

Federal Government

The national government of a federal country, which shares sovereignty with the sub-national governments (such as states or provinces) and usually has powers specifically delegated to it by a constitution.

Production Costs

The total expenses incurred in the manufacture of a product, including raw materials, labor, and overheads.

Wealthiest Counties

Refers to regions within a country that have the highest levels of income, wealth, and economic production.