Managing for long-run profits implies that a company will
A)give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
B)maintain a given price range to ensure there is no loss of customers over time, even if the profit margin declines.
C)invest excess cash in bonds and certificates of deposit in order to counteract any inflationary economic changes in the future.
D)reinvest all profits into market research or product research rather than returned to shareholders.
E)drop all products, product lines, or divisions that cannot maintain their pricing goals.

Question

Quizplus · Accepted Answer

Managing for long-run profits often involves sacrificing short-term gains to increase market share and establish a stronger position in competitive markets, which can lead to higher profits in the future.

Managing for Long-Run Profits Implies That a Company Will