Given that a firm's profit is high enough for it to remain in business, a sales pricing objective may be to _________, which will in turn lead to increases in market share and profit.
A)decrease market share and invest in additional research and development of new products
B)increase sales revenue while decreasing market share
C)increase sales revenue
D)increase research and development financing
E)continue with previous policies that seem to be working

Question

Quizplus · Accepted Answer

The objective of increasing sales revenue is a common pricing strategy used to increase market share and profit. By offering lower prices or promotions, customers may be more likely to purchase from the firm, leading to increased sales and potential long-term customer loyalty. This strategy can also help the firm to better compete with other companies in the industry. However, it is important to balance this with the need to maintain profitability and not undercut the firm's pricing too much.

Given That a Firm's Profit Is High Enough for It