The Pricing Objective of Maximizing Profits

question 53

Multiple Choice

The pricing objective of maximizing profits

• A)has not been affected by other,more socially focused concerns.
• B)is to be implemented under any and all circumstances.
• C)has not always been considered the underlying objective of any pricing policy.
• D)must be considered when determining the price needed to increase market share.

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Definitions:

Government Intervention

The involvement of the government in the market, aiming to correct market failures, redistribute resources, or to achieve specific economic objectives.

Profits

Net income that remains after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Critical Thinking

The ability to objectively analyze and evaluate an issue or situation to form a judgement, by questioning assumptions and identifying biases.

Social Responsibility

Social Responsibility involves businesses and individuals acting in ways that benefit society at large, beyond their own interests or profits.