When a firm has a strong competitive position based on superior product quality or customer service,its primary pricing objective is to generate sufficient revenue to maintain that advantage.

Question

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When a firm has a strong competitive position based on superior product quality or customer service, it often aims to maintain that advantage by setting prices that generate sufficient revenue to cover costs while also keeping competitors from undercutting them. Therefore, the statement is true.

When a Firm Has a Strong Competitive Position Based on Superior