An Intermediary Seeking High Profits Should

question 103

Multiple Choice

An intermediary seeking high profits should:

• A) use the lowest markup that will still cover selling expenses.
• B) use price lining.
• C) use high markups.
• D) choose the markup which maximizes turnover.
• E) try to find the markup level related to the most profitable price.

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Definitions:

Cannibalization

When a company's new product eats into the sales of one of its existing products.

Disruptive Technology

An innovation that significantly alters the way consumers, industries, or businesses operate, often displacing established technologies.

Sales Volume

The quantity of products or services sold by a company within a specific period, often used to measure business performance.

Decline Stage

The stage of the product life cycle characterized by decreases in sales and profits.