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GenaCL600 [577]
3 years ago
9

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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In a large city, two taxi companies own all the licenses that the city will grant to operate taxis. consumers don't care which c
liberstina [14]

Answer:

this situation can be classified as an duopoly

Explanation:

An duopoly is similar to a monopoly but instead of only supplier there are two suppliers that share total market power and control. Both companies also offer basically the same product or service. Competition exists between the companies but it is not significant, both companies decide to coexist. Customers are forced to choose between one company or the other.

In this case, there are only two taxi companies and the customers really don't care what company they use since they both offer similar services. None of the companies even bothers to offer a better service to try to gain a larger market share.

7 0
3 years ago
Target profit a.are when sales and costs are exactly equal. b.can be calculated by modifying the break-even equation. c.equals d
Irina-Kira [14]

Answer:

b. can be calculated by modifying the break-even equation.

Explanation:

As the name implies, target profit can be explained to be the certain amount a business enterprise or a business organisation targets to hit at the end of its sales or at the end of her business dealings.

It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.

Adjust the contribution margin per unit and units sold based on an expected sales promotion.

Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.

Alter the contribution margin for the effects of changing to a just-in-time production system.

If there is continually a large unfavorable variance between the target and actual profit, it may be necessary to examine the system used to derive the target profit,

7 0
3 years ago
Your grandfather invested $1,000 in a stock 36 years ago. currently the value of his account is $318,000. what is his geometric
e-lub [12.9K]
It would be 8,833.33 over the years
4 0
3 years ago
Financial information is presented below: Operating Expenses $ 91100 Sales Returns and Allowances 17000 Sales Discounts 12400 Sa
ira [324]

Answer:

$290,700

Explanation:

The amount of net sales on the income statement is computed as shown below;

Net sales = Sales revenue - Sales discount - Sales return and allowance

Net sales = $320,100 - $12,400 - $17,000

Net sales = $290,700

8 0
3 years ago
A. The factor distribution of income describes the relationship between
ArbitrLikvidat [17]

Answer:

a. The factor distribution of income describes the relationship between

3. capital and total income

b. The factor market and factor prices

1. allocation of income.

Explanation:

In economics, income distribution is defined as how a nation's total GDP is distributed amongst its population. On the other-hand, The factor distribution of income is the division of total income among labor, land, and capital. <em>Factor prices, which are set in factor markets, helps in the  determination of the factor distribution of income.</em>

8 0
3 years ago
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