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elixir [45]
3 years ago
7

The pricing policy used by Middleton Industries, manufacturer of Renaissance charms for bracelets and necklaces, is to set price

s so the its retail prices are as high as the market will tolerate. Additionally, Middleton strives to keep its costs at an industry low by using silver and gold overlays over charms made of cheap base metal. This is an example of a _____ policy.
Social Studies
1 answer:
Schach [20]3 years ago
3 0

Answer:

Option b, profit maximization, is the right answer.

Explanation:

In the context of economics, a process (including both the long and the short run) through which a firm set the price, input, and production levels that commence to the highest profit, is known as profit maximization.

According to the given question, the Middleton Industries are using a price policy most commonly known as profit maximization. This can be said due to the very fact that though they are using silver and gold overlays, the essential material is cheap base metal.

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