Liquiction Pool and Patio Inc.is a company known for its quality pool installations,excellent customer service,and reasonable prices.Given the demand,Liquiction could price its products higher,but it prefers to price its products such that it will earn a reasonable level of profits.Liquiction seems to base its pricing policy on:
A)profit maximization.
B)earning satisfactory profits.
C)creating retained earnings.
D)maintaining a status quo pricing.

Question

Quizplus · Accepted Answer

Liquiction's pricing policy is based on earning satisfactory profits, which means pricing its products to earn a reasonable level of profits rather than maximizing profits or maintaining a status quo pricing. This approach allows the company to balance customer satisfaction with profitability.