Answer: No, johnson & johnson should not double its production capacity of their purell hand sanitizer.
Explanation: An increase in demand of hand sanitizers due to the H1N1 flue will shift the demand curve for hand sanitizers to the right. The price of hand sanitizers will increase meaning that greater production levels are profitable. The firms can take advantage of this profitability by increasing manufacturing capacity. However, capacity will be increased for many years and the H1N1 flu is a temporary phenomenon. So, once the H1N1 flu is controlled demand for hand sanitizer is likely to return to previous levels. As a result the increased capacity will then remain idle and unprofitable. So, johnson & johnson should not double its production capacity of their purell hand sanitizer.
Answer:
Individual branding
Explanation:
Procter & gamble is well known for its use of individual branding because every product in p&g's portfolio has a different brand name.
Individual branding can be defined as a market strategy in which every products sold by a firm has its own unique brand name. Individual branding can also be called "multibranding", "individual product branding", and "flanker brand".
Firms utilizes individual branding strategy in order to target different market segment. Individual branding helps to protect the other products produced by a company if one of them fails.
Each brand produced has a unique identity and name even though they are produced by the same firm. This allows the firm to to separate the image and reputation of each product and fix a different price for each product.
Answer:
c
Explanation:
A public good is a good that is non excludable and non rivalrous.
For example, if there is a statue in a park, Everyone has assess to the statue and because one person is enjoying the view of the statue does not means another person cannot enjoy the view of the statue
Answer:
Demand schedule:
The Demand schedule refers to the tabular representation of the quantity demanded at the various price levels. By observing the demand schedule, we can conclude that as the price of the good increases then as a result the quantity demanded for that good falls. It represents various combination of price and quantity demanded.
Demand curve:
A demand curve refers to the graphical representation of the demand schedule which shows the relationship between the price of the commodity and the quantity demanded for that commodity. It is downward sloping curve which shows that there is an inverse relationship between the price of a good and the quantity demanded.
