Question

A firm that uses a ________ strategy relies on economic theory and a mathematical model to capture all the factors required to explain and predict sales and profits. The firm then uses the data to identify the price that will yield the most profits.

Answer 1

Answer:

Profit

Explanation:

Profit strategy is an approach used by organizations to maximise profits through any possible method. This strategy involves setting different prices on the product to ensure that the company makes profit on each sale of the product in the market.

The various steps to be taken inorder to maximise profits in a business include:

- Removal of different products and services that do not add a significant amount of profit to the organisation

- Finding new potential customers.

- Restructuring the current price structure.

Answer 2

Answer:

Maximizing profits

Explanation:

A profit strategy is one which deals with the use of economic theory and mathematical models to determine the best price for a commodity to ensure maximum profits.

Simply put, a maximizing profits strategy is one that is used to predict the best price of a commodity to ensure the highest profit levels.

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