It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company.
Output and input levels always tend to an equilibrium point it the long run, meaning they are inelastic in the long run.
Elasticity refers to how much supply and/or demand changes with changes in pricing. The more elastic, the more change there is.
In the short-term, output and and supply can change dramatically, but in the long run things tend back to the middle (equilibrium).
Answer:
B) experimentation.
Explanation:
Experimentation is the process by which a business strategy is tested on a smaller scale before it is adopted on a wider scale. A business process or product can be introduced to a particular test group and based on the results extrapolated to other areas.
In this scenario Cami the marketing manager for a regional furniture maker monitors each marketing campaign on overall sales. She also tries novel promotional offers to first time customers in a bid to test efficacy. This is use of experimentation.
Answer:
Penetration strategy
Explanation:
Penetration strategy is an aggressive marketing concept that seeks to establish a sizeable market share for a new product. Marketers will offer a low price and carry out sales promotions to improve the attractiveness of the product. The objective of this strategy is to entice customers to buy the new product, thereby creating a market for it.
The penetration strategy will work if consumers are price sensitive. The new low price will attract sales. If the company raises the price later to make profits, demand may decrease. For this strategy to work, the product must be of high quality. Competitors may lower prices of their products in the medium term giving rise to price wars.
