Pricing decisions based only on revenue considerations often result in an increase in overall profitability.

Question

Quizplus · Accepted Answer

Pricing decisions based only on revenue considerations may lead to decreased profitability if the costs associated with producing the product or delivering the service are not taken into account. In some cases, lowering the price may also increase sales volume but decrease profit margin, leading to lower overall profitability. Therefore, pricing decisions should consider both revenue and cost factors to ensure optimal profitability.

Pricing Decisions Based Only on Revenue Considerations Often Result in an Increase