Companies who believe that higher sales volume leads to lower unit costs and higher long-run profits are attempting to ________.
A) maximize their market share
B) skim the market
C) become a product-quality leader
D) merely survive in the market
E) maximize their current profits

Question

Quizplus · Accepted Answer

Companies who believe that higher sales volume leads to lower unit costs and higher long-run profits are attempting to maximize their market share. Maximizing market share is a strategy where a company aims to capture the largest possible share of a given market, believing that this will lead to increased profits over the long-term. By capturing a larger share of the market, a company can benefit from economies of scale, which should ultimately result in lower unit costs and increased profits.

Companies Who Believe That Higher Sales Volume Leads to Lower