BA 3102 Study Guide - Final Guide: Profit Maximization

• School: Temple University
• Department: Business Administration
• Course: BA 3102
• Professor: Anthony Seeton

Document Summary

The decision to change mail advertising for new memberships to november would be most consistent with the profit maximization theory. With the implication of this decision, green earth"s new members will not be overcharged for a lower value. Instead, this decision will allow all members, existing and new, to have a whole calendar year"s worth of membership for the same annual membership cost for all. In this case, the most significant criterion is to avoid engaging in deception or fraud. Green earth currently uses deception to lure in new members. New members who subscribe for the organization anytime after november do not receive their money"s worth for the price they pay for the annual membership. This is due to the organization"s practice of ending memberships after every calendar year regardless of when the member signed up. A member will only receive an entire year"s worth if he/she signed up in november of the prior year.