Which of the following firms faces a pure selling problem in pricing?
A) A firm that faces a very high fixed cost of production
B) A firm that incurs a small or negligible variable cost of production
C) A firm that faces a highly elastic demand curve
D) A firm that is undercut by competitors and priced out of the market
E) A firm that has a negligible share in the market

Question

Quizplus · Accepted Answer

A firm with negligible variable costs faces a pure selling problem because its main concern is maximizing revenue, as production costs are not a significant factor in pricing decisions.

Which of the Following Firms Faces a Pure Selling Problem