Tesla Motors
"Going green" doesn't have to be boring.The Tesla Roadster Sport is an electric car that goes from 0 to 60 in four seconds and drives more like a race car than an environmentally-friendly ride.But that level of performance will set you back $128,500.As of 2009,Silicon Valley-based Tesla Motors,Inc.was the only company offering highway-compatible electric cars.Most Roadster Sport buyers are car enthusiasts and are buying them for the "fun toy" aspect of having an electric car rather than for environmental reasons.
-Refer to Tesla Motors.The price of the Roadster was set so that total revenue was as large as possible relative to total costs.This represents a _____ approach.
A) profit maximization
B) market share pricing
C) demand-oriented pricing
D) sales maximization
E) status quo pricing

Question

Quizplus · Accepted Answer

Profit maximization means setting prices so that total revenue is as large as possible relative to total costs.

Tesla Motors "Going Green" Doesn't Have to Be Boring.The Tesla Roadster Sport