The pricing objective of company who is plagued with intense competition and overcapacity is ___________?
Correct answer: D. survival
- A. maximum market skimming
- B. maximum market share
- C. maximum current profit
- D. survival
Explanation
Intense competition and excess capacity make survival the immediate pricing objective, even if prices must be lowered. Profit maximization or skimming is less suitable when demand and capacity utilization are pressing problems.
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