Derek's company was bidding on the construction of a new penguin display at a world-famous zoo. when putting together his bid, derek began by determining what the zoo would be willing to pay for the structure, and then subtracting a reasonable profit for the company. the result would be the cost of production. for example: if price to zoo = $6 million, and company profit margin = $2 million, the cost to produce cannot exceed $4 million. [$6 million - $2 million = $4 million.] the demand-based pricing strategy in this example is called
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