Caught between the threat of antitrust action, stockholder demands, and public interest groups, some large corporations set a(an) ______________ pricing objective.
A) increasing target return
B) "aggressive" competition
C) profit maximization
D) increasing market share
E) satisfactory long-run target return

Question

Quizplus · Accepted Answer

When large corporations are faced with threats of antitrust action, stockholder demands, and public interest groups, they may choose a pricing objective that satisfies a long-run target return rather than focusing solely on profit maximization or increasing market share. This approach allows the corporation to maintain a consistent level of profitability while also considering the public interest and avoiding antitrust scrutiny. Therefore, option E, satisfactory long-run target return, is the best choice.

Caught Between the Threat of Antitrust Action, Stockholder Demands, and Public