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3 years ago

A marketing manager has just estimated that her firm's marginal revenue will become negative if a proposed price cut is made.

Business

1 answer:

Viktor [21]3 years ago

7 0

Answer:

D. More Units may be sold - but total revenue will be less than it would be at the higher price

Explanation:

Marginal Revenue (MR) represents the additional revenue that can be obtained if sales of a product are increased by one unit.

MR= is change in Total Revenue/Change in Total Output Quantity

In this situation as envisaged by the Marketing Manager, a price cut will lead to an increase in revenue based on more (marginal) units of the product sold at a lower price. The challenge, however, is that this increase in income will not be enough to offset the decrease in revenue that will result as a result of the price cut.

In other words, the organisation is better off selling fewer products or units at its current price than sell more (marginal units) at a reduced price.

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3 years ago

As the president of Chip City a chain of home electronic stores, you are struggling with ways to attract customers to your store

alexdok [17]

Answer:

Loss-leader pricing

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Loss leader pricing can be defined as a marketing strategy that entails selecting some retail products that is going to be sold below cost. This means that the retailer will not make any profit from the products being sold because the goods are being sold below the actual price.

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An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis

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$ 7.5 million

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3 years ago

Read 2 more answers

Two ways in which best bank can adapt to the challenges of the macro environment

cupoosta [38]

Answer:

Mergers or Information Management

Explanation:

Mergers-In order to respond to certain challenges, businesses may choose to merge with another business. The new business will have a larger market share than either of the original businesses did.

Information management -All changes lead to new information that needs to be distributed to all the relevant parties.

Information must be managed efficiently and a system must be in place so that the relevant staff can easily access it.

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2 years ago

Cindy has been working for 8 years, and she’s built up a huge emergency fund -- $45,000, which would be 6 months of her salary.

SIZIF [17.4K]

I will recommend she invest the $45,000 in Certificate of deposit or Money market account.

It is widely known that a traditional bank’s savings account does not provides significant interest rate for deposit unlike other account which are meant from pure investment at long term.

A certificate of deposit are issued by bank to customer promising them a certain interest rate on their deposit with them.

A money market is also an method of investing in short term market and guarantees high interest rate on deposit.

Therefore, I will recommend she invest the $45,000 in Certificate of deposit or Money market account.

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2 years ago