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nika2105 [10]
3 years ago
10

Product differentiation and advertising are profitable ventures only when:

Business
1 answer:
dalvyx [7]3 years ago
3 0

Answer:

Product differentiation and advertising are profitable ventures only when:

the gain in total revenue outweighs the extra cost

Explanation:

When Company XYZ differentiates its product from competitors' through trademarks and other differentiating factors and embarks on advertising, it must watch out for cost overrun.  The undertaking for the product differentiation and advertising should be able to generate more revenue than the costs.  This will make Company XYZ determine that its differentiation and advertising make economic meaning by producing positive NPV.

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Answer: 6.42%

Explanation:

To calculate this, we use the formula for the Dividend Discount Model/ Gordon Growth Formula as follows:

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3 years ago
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A new machine for harvesting corn will allow rows to be planted only fifteen inches apart, instead of the usual thirty inches. C
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