An intermediary seeking high profits should:
A) use the lowest markup that will still cover selling expenses.
B) use price lining.
C) use high markups.
D) choose the markup which maximizes turnover.
E) try to find the markup level related to the most profitable price.

Question

Quizplus · Accepted Answer

The most profitable price for an intermediary is found by identifying the markup level that balances demand and profit margins, ensuring maximum profitability. This approach considers both the cost of goods sold and the price elasticity of demand to find the optimal pricing strategy.

An Intermediary Seeking High Profits Should