Respuesta :
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.
A profit maximization pricing objective is a sales oriented pricing objective. As more sales will lead to maximum profits .
Under this objective, the seller will try to increase its sales in a way that profit is maximized and there is an increase in marketing.
- There are different kinds of pricing theories , one of which is profit maximization pricing objective. It has its primary motto to increase its cash inflow in positive.
- This will also be used to ensure that the inventory outflow is fast, stable and increasing .
- Under this , prices for products might be premium considering the quality is above average standards .
- Cash inflow will be more than the previous books as there will be premium pricing for similar products.
- The main focus will be sales and hence marketing will be extensive and other miscellaneous costs will be tried to reduce.
The correct option is B that the profit maximization pricing objective is sales oriented pricing objective.
To know more about pricing theories, refer below links
https://brainly.com/question/13026007
