Which of the following firms faces a pure selling problem in pricing?
A)A firm that faces a very high fixed cost or 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 a small or negligible variable cost of production faces a pure selling problem because its main challenge is to determine the optimal price to maximize revenue, as the cost of producing additional units is minimal.

Which of the Following Firms Faces a Pure Selling Problem