Post Utme Igbinedion University 2018 Commerce Question 30

Practice objective / multiple choice question 30 from the 2018 Post Utme Igbinedion University Commerce examination.

Post Utme Igbinedion University 2018 Commerce Objective / Multiple Choice
Question 30 POST_UTME_IGBINEDION_UNIVERSITY • 2018 • COMMERCE • objective

A company is considering the introduction of a new product line. The marketing manager has estimated that the demand for the product will be 1000 units in the first year, increasing by 10% each year for the next 5 years. If the company wants to maximize its profits, which of the following marketing strategies should it adopt?

Answer Options

A. Increase the price of the product by 10% each year
B. Decrease the price of the product by 10% each year
C. Maintain the same price for the product throughout the 5-year period
Correct Answer D. Increase the price of the product by 20% in the first year and maintain it at that level for the next 4 years
Correct Answer
D
Correct Option:
Increase the price of the product by 20% in the first year and maintain it at that level for the next 4 years

About This Question

This is Post Utme Igbinedion University 2018 Commerce Question 30. It is one of the objective questions from the 2018 Post Utme Igbinedion University Commerce examination.

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