Your company has completed its survey on wooden blocks based on famous architectural sites. Analyzing the results below, how could you explain why the price that the maximum number of respondents chose isn’t the optimal price?

3.

Question 3

Your company has completed its survey on wooden blocks based on famous architectural sites. Analyzing the results below, how could you explain why the price that the maximum number of respondents chose isn’t the optimal price?

1 / 1 point

That price has higher costs.

That price doesn’t maximize profits.

That price won’t cover the costs.

In order to choose the optimal price, you have to find the price point at which the profit is largest. That calculation takes into effect the cumulative percentage of people who are willing to pay that price.