Three different objectives relate to a firm's profit, which is often measured in terms of return on investment.These objectives have different implications for pricing strategy.The three objectives include a target return, maximizing current profit objectives, and _________.
A)break-even recovery
B)profit reinvestment
C)profit redistribution
D)target equalization
E)managing for long-run profits

Question

Quizplus · Accepted Answer

The third objective that relates to a firm's profit and has implications for pricing strategy is managing for long-run profits. This objective focuses on the sustainability of profits over the long term, rather than just maximizing current profits or achieving a certain target return. This may involve pricing products lower initially to gain market share and build customer loyalty, with the understanding that the long-term benefits will outweigh the short-term costs.

Three Different Objectives Relate to a Firm's Profit, Which Is