How can setting the price for pickled peppers too high yield profits that are lower than the maximum?
A) The high price will cause the convenience goods to become shopping goods.
B) The high price will hurt the company's reputation, so the product will decline.
C) The high price will generate a large profit per jar, but too few jars will be sold.
D) Customers will insist on paying a lower price, resulting in less income.
E) The high price will cause expenses to rise, reducing profits.

Question

Quizplus · Accepted Answer

C)If a company sets prices too high, then it will make a large profit on each item but will sell fewer units. At the optimal price, the company will sell enough additional units that the revenue (selling price multiplied by units sold)will be greater, and the profit will be greater.

How Can Setting the Price for Pickled Peppers Too High