The pricing policy used by Middleton Industries,manufacturer of Renaissance charms for bracelets and necklaces,is to set prices so the 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 a _____ policy
A) market share pricing
B) profit maximization
C) demand-oriented
D) sales maximization
E) status quo pricing

Question

Quizplus · Accepted Answer

Middleton Industries is using profit maximization as its pricing policy by setting prices at the highest point the market will tolerate and controlling costs by using cheaper materials for the base of their charms.

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