Question
Which of these companies is using a profit maximization objective?
Multiple choice question.
Natalie's Noodles releases four new product lines at the same time to meet the need of every customer.
Martin's Microphones uses the cheapest parts to make its products in order to create a higher profit margin.
Karl's Kleats charges the highest price customers will pay as it wants to make as much profit as possible.
Sarah's Sneakers focuses on product innovation to draw customers away from the competition.
Multiple choice question.
Natalie's Noodles releases four new product lines at the same time to meet the need of every customer.
Martin's Microphones uses the cheapest parts to make its products in order to create a higher profit margin.
Karl's Kleats charges the highest price customers will pay as it wants to make as much profit as possible.
Sarah's Sneakers focuses on product innovation to draw customers away from the competition.
Answers
GPT-4o mini
The company that is using a profit maximization objective is:
**Karl's Kleats charges the highest price customers will pay as it wants to make as much profit as possible.**
This choice indicates a focus on maximizing profit by setting prices at the highest level the market will bear.
**Karl's Kleats charges the highest price customers will pay as it wants to make as much profit as possible.**
This choice indicates a focus on maximizing profit by setting prices at the highest level the market will bear.