Question

An organization is using _____ when it sets its prices so that total revenue is as large as possible relative to total costs.

Answer 1

An organization is using PROFIT MAXIMIZATION when it sets its prices so that total revenue is as large as possible relative to total costs.
Profit maximization will benefit the company because most of the shareholders will predict the company's health by looking at the company's net profit. Profit maximization will increase the company's valuation in the market.