Three pricing objectives relate to a firm's profit. In one known as ________, a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.
A) maximizing current profit
B) target return
C) break-even strategy
D) minimizing risk
E) managing for long-run profits

Question

Quizplus · Accepted Answer

Managing for long-run profits involves sacrificing immediate profits to gain a larger market share, with the expectation that this will lead to greater profitability in the future.

Three Pricing Objectives Relate to a Firm's Profit