A Target Return Profit Objective Implies That a Company Chooses

question 103

Multiple Choice

A target return profit objective implies that a company chooses

• A)to set targets whose performance can be measured quickly such as by quarter or year.
• B)to give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
• C)to set a profit goal that is often determined by its board of directors.
• D)to reduce as many non-essential costs as possible and forego investing in any further market or product research.
• E)base prices on a marginal return on investment.

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Definitions:

External Cost

A cost borne by individuals or society that is not reflected in the market price of a good or service, often associated with negative externalities.

Socially Optimal

A condition or point at which the welfare of a society reaches its highest possible level, considering all factors and resources.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good that suppliers are willing and able to provide.