Asked by Zahra Alasiri on Jun 05, 2024

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Pricing decisions based only on revenue considerations often result in

A) a decrease in overall profitability.
B) an increase in overall profitability.
C) a decrease in overall revenue.
D) a decrease in supply chain revenue.

Pricing Decisions

The process of determining the selling price of goods or services, taking into account factors like cost, demand, and competition.

Revenue Considerations

Factors affecting the income generated from sales of goods or services in a business.

Profitability

The financial metric that measures the degree to which a company or business activity generates profit compared to its revenue or costs.

  • Comprehend the significance of pricing and promotional activities in determining demand.
  • Understand the impact of supply chain decisions on overall profitability and efficiency.
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Sailesh SharmaJun 05, 2024
Final Answer :
A
Explanation :
Pricing decisions based solely on revenue considerations may neglect other important factors such as cost, competition, and consumer demand, leading to a decrease in overall profitability. Optimal pricing strategies take into account various aspects of the market and the business, balancing revenue maximization with profit maximization.