Price-setting logic must be modified when the product is part of a product mix. In that case, the firm searches for a set of prices that ________ profits on the total mix.
A) is ineffective on total
B) has no effect on total
C) maximizes
D) minimizes
E) capitalizes upon

Question

Quizplus · Accepted Answer

When the product is part of a product mix, the firm needs to find a combination of prices that maximizes profits on the total mix. This means that the prices of individual products in the mix may be lower or higher than if they were sold alone, in order to increase overall profitability.

Price-Setting Logic Must Be Modified When the Product Is Part