To maximize profits, passenger trains will charge _____ prices to customers who _____.
A)higher; value the service more
B)higher; are especially price sensitive
C)lower; value the service more
D)the lowest; value the service least

Question

Quizplus · Accepted Answer

To maximize profits, the passenger trains will charge higher prices to customers who value the service more because they are willing to pay more for the service. This allows the train company to charge a higher price and increase their revenue without losing these valuable customers. Charging lower prices to customers who value the service more would be counterproductive in terms of maximizing profits, and charging the lowest prices to customers who value the service least would not allow for optimal revenue generation.

To Maximize Profits, Passenger Trains Will Charge _____ Prices to Customers