The pricing policy used by Middleton Industries,manufacturer of Renaissance charms for bracelets and necklaces,is to set prices so that its retail prices are as high as the market will tolerate.Additionally,Middleton strives to keep its costs at an industry low by using silver and gold overlays over charms made of cheap base metal.This is an example of what type of policy?
A) profit maximization
B) market share pricing
C) demand-oriented
D) sales maximization

Question

Quizplus · Accepted Answer

The pricing policy used by Middleton Industries is designed to maximize profits by setting prices based on what the market will bear and minimizing costs by using inexpensive materials to create its charms. This approach prioritizes maximizing revenue and profitability over other goals like increasing market share or maximizing sales.

The Pricing Policy Used by Middleton Industries,manufacturer of Renaissance Charms