Bill and Farrah have been recently hired by Superior Audio Systems,a cutting-edge manufacturer of speakers.They have been assigned to work on a product team for the Superior V,an existing product,and the Superior VI,a brand-new speaker technology.The team is reviewing the pricing strategy used to this point.Bill insists that they should price the speakers to maximize profits.He explains,"It is basic economics: companies price their products to maximize profits.There's no question,this is the strategy that we should use." Farrah,remembering what she learned in her marketing courses,isn't so sure that Bill is right.Farrah explains why Superior Audio Systems might not want to set prices for the Superior V at a level that maximizes profits.What do you expect that Farrah will tell Bill?

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The Answer of Bill and Farrah have been recently hired by Superior Audio Systems,a cutting-edge manufacturer of speakers.They have been assigned to work on a product team for the Superior V,an existing product,and the Superior VI,a brand-new speaker technology.The team is reviewing the pricing strategy used to this point.Bill insists that they should price the speakers to maximize profits.He explains,"It is basic economics: companies price their products to maximize profits.There's no question,this is the strategy that we should use." Farrah,remembering what she learned in her marketing courses,isn't so sure that Bill is right.Farrah explains why Superior Audio Systems might not want to set prices for the Superior V at a level that maximizes profits.What do you expect that Farrah will tell Bill?

Bill and Farrah Have Been Recently Hired by Superior Audio