Thompson Pool and Patio is known for quality pool installations, excellent customer service, and reasonable prices. If you want to have a Thompson pool, you will have to wait about six months due to demand for their product. While Thompson could probably price its product higher, given the demand, they don't. Instead, the company sets its price so that it will earn a reasonable level of profits. Thompson seems to base its pricing policy on:
a. profit maximization.
b. earning satisfactory profits.
c. creating retained earnings.
d. making the most money as possible.
e. decreasing consumer demand.
ANSWER: b