What is an organization using when it sets its prices so that total revenue is as large as possible relative to total costs?
A)profit maximization
B)market share pricing
C)demand-oriented pricing
D)status quo pricing

Question

Quizplus · Accepted Answer

Profit maximization is a pricing strategy in which the organization sets its prices in a way that maximizes its profits by increasing revenue and reducing costs. This involves determining the price point at which the marginal cost of producing an additional unit of a product is equal to the marginal revenue from selling that unit. By setting prices in this way, the organization can maximize its profits and remain competitive in the market.

What Is an Organization Using When It Sets Its Prices