Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation.This is an example of __________________:
A)Illegal price discrimination
B)Collusion
C)Volume analysis
D)Revenue management
E)Outsourcing

Question

Quizplus · Accepted Answer

This is an example of revenue management, which involves adjusting prices in a way that maximizes revenue from a fixed capacity. This is often used in industries such as airlines and hotels, where there is a limited amount of seats or rooms available at any given time. By manipulating prices based on demand, companies can avoid having empty seats or rooms, and maximize their revenue. This practice is legal as long as it does not involve illegal price discrimination or collusion.

Some Companies Attempt to Maximize the Revenue They Receive from Fixed