1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
What is a common element of most budget documents in which the chief executive highlights the major issues, constraints, priorit
vivado [14]

The budget message approach is a formal oral presentation through the government to the council that explains the price range in phrases of dreams to be executed and how the budget pertains to the Comprehensive Plan.

The budget summary includes budgeted quantities, encumbrances, transaction totals, and finances balances and is the net equal to the printed BSR. The budget summary file now additionally includes Open Balances.

A budget proposal summarizes the predicted prices for an upcoming undertaking a good way to ease investment from project stakeholders. Your budget thought breaks down the cost factors associated with your undertaking. This suggests to stakeholders the blessings and/or drawbacks of having worried.

Learn more about investment here: brainly.com/question/1305349

#SPJ4

3 0
1 year ago
A hardware store will run an advertising campaign using radio and newspaper. every dollar spent on radio advertising will reach
Sindrei [870]
The answer would be 900k I thinkg
6 0
3 years ago
You’re the Marketing Director for a global financial company. The holidays are approaching and your boss wants to improve the co
KiRa [710]

Yes it is a good idea which can increase the company's bottom line

4 0
3 years ago
Medzone Inc., a pharmacy company, has collaborated with Bit Corp., a food manufacturing company, to come up with a third company
kodGreya [7K]

Answer:

MedBit Inc. is a joint venture company.

Explanation:

A joint venture is an entity established by two or more existing entities for a purpose.

Medzone Inc. and Bit Corp will jointly share from the business outcomes of this third entity, which is legally separate from the two.

Reasons for forming joint venture companies include to combine expertise, reduce costs, and leverage resources.  Medzone Inc. and Bit Corp must have considered these advantages in setting up MedBit Inc.

The purpose of all ventures is the creation of value for stakeholders.  Where two or more entities consider that they can achieve more value creation, they can come together to do so.

3 0
4 years ago
What is the value of a firm with initial dividend Div 1​, growing for n years​ (i.e., until year n plus 1​) at rate g 1 and afte
finlep [7]

Answer:

stock price = (Div 1 / r - g1) x {1 - [(1 + g1) / (1 + r)]ⁿ}    +    (Div 1 / r - g2) x [(1 + g1) / (1 + r)]ⁿ⁻¹

Explanation:

since the company will first grow at g1 for n years, and then at g2 forever, we need to first determine the present value of the dividends growing at g1 for n years:

present value of the dividends during n = (Div 1 / r - g1) x {1 - [(1 + g1) / (1 + r)]ⁿ}

e.g. div = $2, n = 5 years, g1 = 8%, r = 12%

(2 / 12% - 8%) x {1 - [(1 + 8%) / (1 + 12%)]⁵} = 50 x 0.166263 = $8.31

now we find the formula to calculate the present value for the growing perpetuity g2 at n - 1 years:

= (Div 1 / r - g2) x [(1 + g1) / (1 + r)]ⁿ⁻¹

following the same example but changing g1 for g2, and g2 = 5%

= (2 / 12% - 5%) x [(1 + 5%) / (1 + 12%)]⁵⁻¹ = 28.5714 x 0.772476 = $22.07

we now add both parts to finish our example = $8.31 + $22.07 = $30.38

8 0
3 years ago
Other questions:
  • LO 3.5Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month of June. Marcus expec
    9·1 answer
  • When will diversity affect the workplace?
    6·2 answers
  • Assume that a risky security pays an average cash flow of $100 in one year. The risk-free rate is 5%, and the expected return on
    14·1 answer
  • Monetary policy most directly impacts :
    5·1 answer
  • As Jake began his market research, he discovered that there wasn't another retail boating supply business for more than 100 mile
    12·2 answers
  • Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation
    10·1 answer
  • There are about 6.8 billion people in the world, and about 11.4 billion usable hectares. currently, the population of the united
    11·1 answer
  • What activity invokes using fossil fuels directly indirectly
    12·1 answer
  • Barbara found a 1099-Int from her bank while spring cleaning. She knew right away that she did not give this to her accountant f
    12·1 answer
  • Competition among sellers (producers) lowers costs and prices, and encourages producers to produce more of what consumers are wi
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!