Answer:
Whether the demand for their product is elastic or inelsatic AND whether they have close competitors
Explanation:
*DEMAND ELASTIC OR INELASTIC*
If the product A&B is selling has close substitutes, the product is likely to be more elastic. This means that even a slight rise in price will shift consumers to the substitutes ( competitor's product) which have lower prices. Moreover if the product takes a larger proportion of people's income, and is a luxury, the price is likey to be elastic. However if the product is inelastic ( the product doesn't have close substitutes), an increase in price will not cause much fall in sales, resulting in the prevention of losses in revenue. By using this knowledge A&B can determine whether or not they can use price skimming or promotional pricing.
*CLOSE COMPETITORS*
If the product that A&B is selling has close competitors, raising the price greater than competitor's prices will result in losses of A&B and it will loose customers to rival businesses. A&B can also decide by observing the quality of rival's products and examine whether they should further increase the quality and set higher prices for their product to create a 'higher quality image'.
Through these observations A&B can decide if competitive pricing or penetration pricing will be suitable for it or not.
Stamp act!!!! Hope this helps!!! :)
Answer:
Gross profit= $195,000
Explanation:
Giving the following information:
Sales= $240,000
Number of units sold= 75
Weighted-average cost= $600 each.
<u>To calculate the gross profit, we need to use the following formula:</u>
Gross profit= sales - COGS
Gross profit= 240,000 - 75*600
Gross profit= $195,000
<span>If you spend $35 using a credit card you have created, a $35 financial liability for yourself. </span>
When an economy is at long-run equilibrium it means the employment rate is equivalent to the natural employment rate, the actual price level being equal to the objected or anticipated price level and the GDP is at the potential output. Therefore, an increase in consumer expenditure will cause an increase in the price level but will have no effect of the GDP in the long run. The demand curve will shift rightward and increase the out put in the long run.