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GuDViN [60]
3 years ago
14

A product that represents a clear technological advance over competing products can generally command a high price. Because tech

nological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the maximum possible price for such a product. But large profits on the new product will give competitors a strong incentive to quickly match the new product’s capabilities. Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.
Business
1 answer:
Alex Ar [27]3 years ago
8 0

Answer:

The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy

Explanation:

The strategy to increase overall profits from the new product is to charge less than the largest possible price.

  1. Let’s break down the logic now - and it’s going to be long and complicated. Ignore the boldface for now, because if we don't understand how logic works, we can have a hard time understanding the role of each component:

With advanced technology, a new product can usually be sold at a higher price.

  • Most companies charge as much as they can because (a) advanced technology quickly outperforms them and (b) companies want to make as big a profit as they can.
  • Knowing that any technical advantage you have will soon outweigh the cost as much as you can to maximize your immediate profit.
  • When competitors see a company making big profits on a new product, they want to quickly match the technology of that product.
  • By maximizing your own profits, you are giving competitive companies an incentive to quickly "catch up" and create products with similar capabilities.
  • Instead, if you don't charge as much as you can and increase your immediate profits, competitors are less likely to match the product.
  • Without great high prices, your company has more time to make profits than a technologically advanced product.
  • Therefore, according to the author, if a company wants to maximize overall profits from a new product, it must charge less than the highest possible price.
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balandron [24]

Answer:

Explanation:

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7 0
4 years ago
What are some of the benefits of establishing a minimum wage?
lapo4ka [179]

it can help certain families

it serves as an employment incentive

it is a common reference with hiring in other jobs

it can also be helpful depending on the type of market

7 0
4 years ago
Read 2 more answers
On January 1, 2022, the Sheridan Company ledger shows Equipment $49,700 and Accumulated Depreciation $18,280. The depreciation r
Lisa [10]

Answer:

revised annual depreciation will be : 13710

Explanation:

After revision the remaining life of equipment shrank down to 2 years, so the depreciation working will be worked out to adjusted the impact of decreasing of useful life.

As per existing information the depreciation charges are calculated as :

(Cost-Salvage Value)/Useful life= (49700-4000)/10 = 4570

Accumulated Depreciation indicates that 4 years have past by (18280/4570)

now remaining years are 6 which will be reduced to 2 after revision so the new working will be as follows:

Remaining Cost :31420  (49700 -18280)

Salvage Value : 4000

Revised Remaining Useful Life  : 2

Revised Calculated Depreciation Annual  : (31420-4000)/2 = 13710

It can be further verified through simple math also:

Adding annual depreciation of remaining 2 years : 13710 +13710 =27420

Value available for depreciation after salvage value : 31420 -4000= 27420

3 0
4 years ago
International trade has always played a role in the U.S. economy. Is this role increasing or decreasing (in terms of exports and
Arturiano [62]

Answer: Option (F)

Explanation:

International trade tends to allow nations to expand their respective markets for commodities, goods and services which otherwise wouldn't have been available. As the outcome of the international trade, market tends to contain the greater competition, thus indirectly tends to have competitive prices, that further brings cheaper commodities home to consumer.

The vital point under this scenario is that within the past decade due to technological transformation the cost of communication has decreased drastically and thus has always impacted International trade.

8 0
4 years ago
Most plants want to have their supplies delivered just before they are needed to be used in production
vovangra [49]

Answer:

  True

Explanation:

The modern notion of "just in time" material delivery supports reduction of inventory and its associated costs. Plants that have sufficiently steady raw material usage will prefer supplies delivered "just in time."

Plants that have wildly varying production schedules or product mix may prefer a generous "safety stock." They may also prefer a generous supply inventory if their supply chain is unreliable.

It is true that most plants <em>want</em> to have supplies delivered just in time, but circumstances may make needs differ from wants.

4 0
3 years ago
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