Question

profit maximization pricing objective a. is a status quo oriented pricing objective. b. is a sales-oriented pricing objective. c. is often stated as percentage of market share. d. can never be socially responsible. e. does not always lead to high prices.

Answer 1

Answer:

e. does not always lead to high prices.

Explanation:

Profit-maximization pricing means fixing prices so that total revenue is more as compared to total costs. This pricing strategy is used by a monopolist.

It is the short run or long run process by which the price and output level is determined by the firm that can give the maximum profit.

The price per item has been set higher than its total cost of production make to sure that the company makes a profit on each sale. As a result, the company makes a profit on every sale and to reduce risk and uncertainty factors in business operations.

Profit maximization pricing objective does not always lead to high prices.