With profit-oriented approaches to pricing,a price setter may choose to balance both __________ and __________ to set price.
A) revenues; profit
B) tangible goods; services
C) costs; revenues
D) demand; supply
E) cost; demand

Question

Quizplus · Accepted Answer

Profit-oriented pricing approach focuses on maximizing profits. To determine the price, a firm must consider both the costs of producing and selling the product as well as the revenues generated. Therefore, the price setter may choose to balance costs and revenues to set the price. Choice A, while related, does not represent the two factors that are balanced directly. Choice B is incorrect because this is not a balance of two factors. Choice D and E, while related, do not represent the two factors that are balanced directly.

With Profit-Oriented Approaches to Pricing,a Price Setter May Choose to Balance