When a firm uses a mathematical model to identify the price at which the firm will make the most money possible, it is implementing . competitive parity the maximizing profits strategy the target profit pricing strategy the target return pricing strategy

The maximizing profit strategy

Explanation:

When companies decides to use mathematical process in determining pricing, they are opting for profit maximizing strategy. Profit maximization is the situation in sales whereby profit are highest. Calculus is usually used in calculating the profit maximizing number of units produced. The level of output chosen for profit maximization is when the marginal cost equals the marginal revenue. This is the level at which the price is determined. Profit maximization analysis is a mathematical approach that helps organizations determine the price and output level that returns the greatest amount of profit.

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