Genetech Corp. has invested heavily to develop a patented new product. Genetech wants to achieve a rapid return on its investment. It probably should set a ______________ pricing objective.
A) profit maximization
B) target return
C) sales-oriented
D) status quo
E) None of these is a good answer

Question

Quizplus · Accepted Answer

Profit maximization involves setting the highest possible price in order to achieve the highest possible profit. Given that Genetech has made a significant investment in developing a new product, it is likely that they would want to maximize their profits in order to recoup their investment as quickly as possible.