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If a firm's profit is high enough for it to remain in business, a pricing objective may be to ________, which will in turn may lead to increases in market share and profit.
A) increase the commitment to social responsibility
B) increase dollar sales revenue
C) decrease unit volume while maintaining price
D) increase research and development funding for new product line extensions
E) continue with previous policies that seem to be working
Pricing Objective
Refers to a company's goal related to the pricing of its products or services, which could include maximizing profits, increasing market share, or achieving price stability.
Market Share
The percentage of total sales in a market captured by a particular company, product, or brand, indicating its competitiveness and standing in the market.
Dollar Sales Revenue
The total amount of money generated from sales of goods or services, expressed in dollar terms.
- Clarify the role that pricing plays in achieving the financial objectives of a firm, particularly in terms of revenue maximization and profit enhancement.
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Learning Objectives
- Clarify the role that pricing plays in achieving the financial objectives of a firm, particularly in terms of revenue maximization and profit enhancement.
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